Rust on crude oil
US President Donald Trump is very angry with India these days. The reason is India’s purchase of crude oil from Russia. With this, he has announced to impose tariffs up to 50% on some products coming from India. Trump said on August 6 that 25% additional tax will be imposed on goods imported from India, which will be applicable from August 28. This means that the total tax rate on some Indian products will reach 50%. According to an Economic Times report, in 2024, the US imported about $ 87 billion from India. In such a situation, such a high tariff can almost eliminate the import of Indian goods in the American market.
Trump’s threat will not affect
According to a report by Reuters, the market has not taken Trump’s warning much seriously. The international oil market is confident that it will not have any major impact on India. Trump’s record also suggests that he is suddenly known for changing his decisions, so it is difficult to consider his announcement to be final. Experts say that this move of Trump can actually try to pressurize Russia’s President Vladimir Putin, in which India is being used as a way.
No threat to the market in supply
Crude oil prices fell after Trump’s announcement. Brent crude oil in the Asian market on Monday reached $ 65.81 per barrel, which is the lowest level of the last two months. This trend of prices shows that the market does not have any major danger in the oil supply chain. Experts say that India will either buy oil from Russia as before, or will easily take oil from another country if needed. In such a situation, there will be no significant impact on global oil supply.
America trapped in the affair of Russia-China-India
India and China are at the forefront of those who buy the most crude oil from Russia. China is the world’s largest oil buyer, and the US and the rest of the western countries are also dependent on China in many cases. This is the reason why Trump cannot stop China from buying oil from Russia. India’s situation is slightly different. Especially private refinery companies, such as Reliance Industries, will not want to spoil their business relations with Western countries. Nevertheless, in view of energy needs and the current market situation, Russian oil will remain an important support for India.