American President Donald Trump said on Sunday that Prime Minister Narendra Modi knows that he is angry because of India buying oil from Russia. He also said that America may increase tariffs on India very soon. Let us tell you that America is currently imposing 50 percent tariff on India and out of this 50, additional 25 percent tariff is being imposed as a penalty for purchasing crude oil from Russia. But, if America once again increases the tariff on India, it can have a very bad impact on the country’s exports. However, it may help exporters diversify their overseas markets.
Like India, America is afraid of taking strict steps against China
Experts said that as the threat of tariffs deepens, India will have to take a clear decision on the issue of Russian oil. Economic research institute GTRI said on Monday that Indian exports to the US have already declined by 20.7 percent between May and November 2025 and this decline could accelerate if the tariffs increase further. GTRI pointed out that Indian goods already face a hefty tariff of 50 percent. Ajay Srivastava, founder of Global Trade Research Initiative (GTRI) said that unlike China, India has no strategic advantage over America. He said that China is the largest buyer of Russian crude oil, but America has not yet taken any strict action against China due to fear of consequences.
India has doubled the import of crude oil and other petroleum products from America.
India has doubled the import of crude oil and other petroleum products from America, but America will ignore it. Exporters’ apex body FIEO also said any increase in tariff beyond the existing 50 per cent would severely impact Indian exports. He said that this will happen especially in the traditional areas of export. But these tariffs could also serve as a catalyst for faster diversification and risk reduction, said FIEO Director General Ajay Sahay. Such pressures encourage exporters to reduce excessive dependence on a single market, seek alternative destinations, and improve products and processes.
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