Don’t blink, Delhi: Trump’s tariff leverage has limits
Delhi must approach Donald Trump carefully, as he carries new legislation to impose tariffs and penalties on countries with high trade ties to Russia. While India has reached a trade deal, it must not rush into implementation. The entry into force clause is crucial. Trump has imposed a 100% tariff on top 5 Russian oil importers, but keeps a reserve for future action.
India should seek more permanent protection and written assurances from the US. Currently, India's trade with the US is performing well, with exports up over 11% and a reduced trade deficit. Russia oil tariffs are being avoided for now, as India has restored healthy access to Iraqi crude. The US is also considering reducing its military support for Ukraine, and Iran's focus has shifted towards Saudi Arabia, exposing the limits of the Saudi-led Mecca accord.
India, as a large consumer and major refiner, can help sustain price stability and reduce dependence on China. The US should consider defanging the Graham Act by securing specific assurances for India.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
