BS EDIT: Why a proposed US tariff could reshape India–US trade ties

By Business StandardPublished On Jan 12, 2026

What’s at stake

Donald Trump has backed a Bill allowing 500% tariffs on buyers of Russian oil and uranium, threatening an India–US trade deal

India under pressure

The US has already imposed higher tariffs on Indian goods linked to Russian oil, while China, the largest buyer, has not been targeted

India’s oil pivot

India’s Russian oil imports have fallen sharply since 2023. Softer crude prices have eased the shift, but policy risks remain

Trade impact

A 500 per cent tariff would effectively shut Indian goods out of the US market, where India ran a $45.8 billion surplus in 2024

Market risks

The tariff threat has unsettled markets. Foreign investors sold $19 billion of Indian equities last year, pressuring the rupee

The way forward

As India nears an EU trade deal, engagement with Washington remains critical to limit economic risks