Trump To Indirectly Attack Indian Exports?

Many sectors in India, which are majorly dependent on exports to USA, are already reeling under huge tariff pressure after Donald Trump imposed exorbitant charges over various economic and diplomatic reasons. 

Now, the US government seems to be targeting India once again with another stringent tariff measure. This time it is not a direct imposition but rather an indirect attack on Indian imports. 

Going into the details, the United States Senate has passed a new Russia sanctions bill. The bill gives US President Donald Trump the power to place tariffs of up to 100% on goods from countries that continue buying large amounts of Russian oil and gas. 

It is a known fact India is one of the biggest buyers of Russian crude oil. It has become an important source of energy particularly after the Russia-Ukraine war began. India has bought more oil from Russia because it is available at lower prices than many other suppliers. 

Moreover, after the Hormuz crisis due to ongoing US – Iran war, India’s dependence on Russia has increased significantly.  This has helped India control fuel costs and support its growing economy. Indian officials have also said that the country’s energy needs come first and that oil purchases are based on national interest. 

If Trump decides to use the powers in the bill, Indian exports to US could become much more costly. Goods made in India may face heavy import duties in the US, making them less competitive. This could affect sectors such as engineering goods, textiles, auto parts and other exports that depend on the American market. 

Due to these consequences , the bill has garnered the attention of Indian government. However, it will need to pass through the remaining steps before turning into a law for the president to exercise his full powers. 

For now, there is no immediate threat given the cordial trade relations between US and India. But, it still has the chance to kick in fears among businesses in various sectors of India.