India’s energy shield turning into a US trade weapon

Global Trade Research Initiative (GTRI) has issued a warning that India should not allow energy security to be used as a tool in US trade negotiations. GTRI founder Ajay Srivastava suggested that the US could employ steep tariffs as leverage, potentially forcing India to reduce Russian oil purchases or make concessions in a bilateral trade agreement.

The act recently passed by the US Congress targets major buyers of Russian energy, which could include India and China. With Russia supplying over half of India's crude oil, the threat looms large. GTRI emphasized that India should maintain energy security and not compromise it for temporary tariff relief. They also cautioned that a potential trade agreement or reduced Russian oil purchases might not fully protect India from future US trade actions, such as Section 301 measures or sectoral measures.