India Faces 50% U.S. Tariff Over Russian Oil: What’s at Stake?

KHUSHI KUMARI

IMAGE SOURCE: GOOGLE IMAGES

President Trump doubled existing duties—adding an extra 25% “penalty” for India’s purchase of Russian oil—bringing total tariffs to 50%

Trump is pressuring India to reduce reliance on Russian crude—oil revenue being a key funding source for Russia amid its war in Ukraine

These "secondary tariffs" target nations dealing with Russia, expanding U.S. leverage beyond direct sanctions

Government assessments indicate around $64 billion worth of exports—nearly 80% of India's U.S. shipments—face vulnerability

While damaging for sectors like textiles and gems, India’s GDP growth forecast remains steady at 6.5%, aided by strong domestic demand

The rupee has weakened, prompting RBI interventions to stem dollar demand spurred by rising crude import bills

Tariffs could reroute global trade toward Bangladesh, Vietnam, affecting supply chains and export competitiveness

India balances energy needs with trade realities—seeking alternative suppliers while exploring negotiation avenues to soften the blow