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New Delhi: US President Donald Trump has threatened to impose 100% tariffs on India if it doesn’t stop buying crude oil from Russia. This warning comes amid Trump’s demand for Russia to end its war with Ukraine within 50 days. India currently relies on Russia for about 35-40% of its crude oil needs.
Potential Impact on India
If India stops importing oil from Russia due to US tariffs, petrol and diesel prices in India could rise by Rs 8-10 per liter. Union Petroleum Minister Hardeep Singh Puri expressed concern over this possibility. India imports 88% of its oil needs, with Russia accounting for 38%. To mitigate risks, India is considering diversifying its energy portfolio and exploring alternative payment systems like rupee-rouble trade.
Implications and India’s Strategy
India’s position in the global trade landscape is complex amid Trump’s protectionist policies. While Trump’s tariffs could lead to higher costs for Indian exporters, making their products less competitive in the US market, India may also benefit from shifts in supply chains. India’s strong ties with the US and negotiations between leaders like Prime Minister Narendra Modi and Trump could help mitigate some damage.
