U.S. Trade Barriers Clash with International Markets: Impact Felt by India, Japan, and Cryptocurrency

Donald Trump's recent support for a comprehensive bill proposing tariffs as high as 500% on nations conducting trade with Russia has rattled international markets, putting India and China at particular risk. The initiative,

in a recent address, is designed to cut off Moscow’s financial resources and increase pressure on Russia to halt its conflict in Ukraine. Bloomberg reports that , as the country imported Russian energy worth €3.1 billion in October alone, spanning crude oil, coal, and petroleum products. China, the top purchaser of Russian energy, .

These proposed tariffs would add to an existing 50% duty on Indian imports, which already includes a 25% fee on crude oil,

. India's Petroleum Minister Hardeep Singh Puri has recently revealed plans to broaden the nation’s energy portfolio, . Still, the new tariff proposal could undermine India’s energy diversification efforts, especially as even as officials pledge to lessen reliance on Moscow.

Japan, another significant U.S. ally, is already feeling the consequences of Trump’s trade approach. The Japanese economy

, marking its first decline in over a year, as U.S. tariffs led to a drop in auto and parts exports. , established in a July trade agreement, has slowed growth in export industries, according to Moody’s economist Stefan Angrick. This development highlights Trump’s broader trade strategy, which increasingly favors domestic industry protection over international collaboration.

At the same time, the cryptocurrency sector has experienced significant volatility.

in total value locked (TVL) wiped out since October, with leading platforms like and Lido suffering losses of up to 40%. (ETH), the world’s second-largest cryptocurrency by market cap, has , signaling declining institutional interest and ETF withdrawals. Experts attribute the DeFi downturn to wider economic headwinds, including Trump’s assertive trade policies, which have dampened global investor confidence.

The economic impact goes beyond just energy and digital assets.

forecasts that the worldwide Energy Management Systems (EMS) sector will expand at a 16.4% annual rate, reaching $219.3 billion by 2034, fueled by smart grid adoption and AI-driven efficiency tools. However, Trump’s tariffs and ongoing geopolitical strife may hinder progress, such as India and Japan.

With the U.S. ramping up economic sanctions on Russia, the global economy faces mounting instability. As key partners like India and Japan struggle and cryptocurrency markets tumble, the outlook remains highly uncertain.