India US trade deal:Policy think tank GTRI shares 3-step plan for what should be India’s plan to tackle ‘Trump Tariffs’

The recent US sanctions on major Russian oil companies and existing tariffs on Indian exports have created a challenging situation for India, impacting both its energy security and trade relations with the US. The Double Whammy: Sanctions and Tariffs: The US initially imposed a 25% tariff on Indian exports, accusing India of supporting Russia’s war by buying discounted Russian oil. This doubled the total US duties on Indian goods, leading to a significant drop in Indian exports. Then, the US sanctioned Russian oil giants Rosneft and Lukoil, which account for a large portion of Russia’s oil production, warning of secondary sanctions for those trading with them. These secondary sanctions could disrupt financial networks and critical operational systems. GTRI’s Three-Step Strategy for India The Global Trade Research Initiative (GTRI) suggests a three-step approach for India to navigate these challenges: 1. Stop Russian Oil Imports from Sanctioned Firms: Immediately halt oil purchases from Rosneft and Lukoil to avoid the risk of secondary sanctions, which can severely disrupt financial and operational systems.
2. Demand Removal of the “Russian Oil” Tariff: Once the oil imports from sanctioned companies cease, India should push the US to remove the 25% tariff imposed on Indian exports.
3. Restart Trade Talks on Equal Footing: Only after the tariff issue is resolved should India resume trade negotiations with the US, ensuring that these talks are separate from the sanctions and tariff issues. India should aim for fair terms, similar to those enjoyed by other major trading partners, and protect its digital economy and agricultural sector. Prioritising Strategy Over Speed The GTRI emphasises that India needs a carefully planned approach to its relationship with the US, focusing on securing energy stability, restoring fair tariffs, and then negotiating trade on balanced terms to protect its long-term interests. ​