- Trump announced substantial tariff increases on Indian goods over the Russia oil trade, and Bitcoin dropped from $115,524 to below $115,000.
- India’s Ministry of External Affairs vowed to protect national interests against the new U.S. trade pressures.
- The tariff threat marks the first direct economic retaliation against India since the Ukraine war began.
President Donald Trump revealed plans to substantially raise tariffs on Indian goods following criticism of India’s oil trade relationship with Russia. The announcement sent shockwaves through financial markets, with Bitcoin falling below $115,000 after reaching an intraday high of $115,524.
Trump issued the statement on Truth Social, condemning India for purchasing large quantities of Russian oil and reselling it on global markets for profit. The president accused Indian authorities of ignoring lives lost due to Russia’s military actions in Ukraine while profiting from energy transactions.
The tariff threat represents a significant escalation in U.S.-India trade tensions, marking the first direct economic retaliation against India over its energy policy decisions since the Ukraine war began.
Bitcoin Rally Loses Steam After Tariff News
Cryptocurrency markets experienced immediate volatility following Trump’s tariff announcement. Bitcoin had been climbing the night before, spiking to $115,524 at approximately 3:00 PM. The rally proved short-lived as the digital asset quickly retreated below $115,000.
The crypto market initially gained momentum after Trump announced that he would announce a Federal Reserve Governor who would support rate cuts. Bitcoin’s positive trajectory reversed sharply once news of the India tariff plan emerged, with the cryptocurrency dropping to approximately $114,600.
Market participants witnessed Bitcoin removing portions of its previous gains as traders processed the implications of renewed trade tensions between major economies.
India Vows to Protect National Interests
Trump linked India’s Russian oil purchases directly to Moscow’s war capabilities, calling the trade part of the “Russian War Machine.” The president confirmed substantial tariff increases without providing specific rates or implementation dates. India previously faced a 25% tariff imposed on July 30, initially triggering sharp Bitcoin price declines.
Randhir Jaiswal, India’s Ministry of External Affairs spokesperson, responded firmly on the X platform. He stated India would safeguard its national interests and economic security, vowing the nation would “not hesitate to rise to the occasion” if the U.S. proceeds with additional tariffs.
The dispute threatens to strain the trade relationship between the United States and India, a rapidly growing economy and a significant American trade partner. Industries likely affected by increased tariffs include pharmaceuticals and textiles, representing major Indian export sectors.
India has faced mounting criticism from Western leaders for expanding Russian oil imports since the Ukraine conflict began. The U.S. previously avoided direct economic retaliation against India over energy policy, making Trump’s tariff threat a notable policy shift.
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