Next Article
US tariffs on Russian oil imports could hit India hard
The US just slapped a 25% tariff on Indian exports, which could cost India over $30 billion—about 0.7% of its GDP for 2025.
This move, announced just days before the August 1 deadline, is a response to India's trade with Russia for oil and military gear, and is in line with an earlier plan for a 26% tariff.
India's strong domestic demand may cushion the blow
Analysts expect the tariffs to slow India's growth and weaken the rupee, but say the country's strong domestic demand should cushion the blow.
Garima Kapoor from Elara Capital suggests that hashing out a solid trade deal with the US by late 2025 could help bring some long-term stability.