US President Donald Trump signed an executive order adding a 25% tariff on Indian products "in response to continued purchases of Russian oil," which is a major source of revenue for Moscow.

The new surcharge joins the 25% tariff that is set to take effect on August 7, along with tariffs that Trump presents as "reciprocal," and will only take effect after 21 days, according to the order.

It will not apply to a number of products, which significantly reduces its scope, AFP reported.

However, these exemptions apply to products that are subject to specific sectoral tariffs, such as steel or aluminum, or that will soon be subject to such tariffs, such as pharmaceuticals, which are an important industry in India, or semiconductors.

The publication of the decree slowed the rise in oil prices, which, however, remain on an upward trend today.

The measure aims to limit Moscow's ability to finance the conflict in Ukraine, which the decree describes as "an unusual and extraordinary threat to the national security and foreign policy of the United States."

"I believe that imposing the tariffs described herein, in addition to other measures taken in response to the national emergency, will be more effective in addressing this threat," the US president added in the order.

After China, India is Russia's main customer for oil, accounting for nearly 36% of Indian imports in this area in 2024, compared to about 2% before the war, according to data from the Indian Ministry of Commerce.

New Delhi justifies this dependence on Russian crude oil by saying that "traditional supplies were redirected to Europe after the outbreak of the conflict" in Ukraine, when European countries were looking for alternatives to Russian hydrocarbons.

In addition, Western sanctions, in particular the price cap on Russian oil, made it even more lucrative for Indian companies, which thus saved billions of dollars in import costs.

But Donald Trump has toughened his tone towards New Delhi in recent weeks, citing these purchases as one of the reasons for his dissatisfaction.

On August 5, he announced his intention to increase tariffs on Indian products in response.

"India is not a good trading partner because it does a lot of business with us, but we don't do business with it. That's why we agreed on 25%, but I think I will increase that number significantly in the next 24 hours because they are buying Russian oil," he said in an interview with CNBC. | BGNES