New Delhi's chief economic adviser, V Anantha Nageswaran, rattled the SBI banking and economics conclave in Mumbai on Thursday by spelling out the fragile state of India‑US trade ties. He said the relationship is stuck in an "uneasy equilibrium" after last year’s tariff wrangles that still haunt both sides.
A new U.S. law gives President Donald Trump the power to levy up to 100% tariffs on any country that buys Russian oil and gas. While the measure is technically aimed at curbing Russia’s war‑financing, it throws a wrench into India’s plans to lock in a final tariff rate on Russian crude.
Earlier this year, Washington and New Delhi signed an interim trade deal, but the deal’s durability now hinges on how the U.S. applies its new tariff framework. Nageswaran warned that India’s vast geography and size force it to straddle between competing global blocs, a balancing act that may come at the price of higher energy bills and sporadic supply disruptions.
With the U.S. trade chief eyeing a 100% levy, Indian negotiators are scrambling to secure a concrete tariff figure before Washington’s deadline. The next move will likely be a high‑stakes meeting between Delhi’s trade officials and Washington’s tariff committee, where the fate of India’s energy imports and economic stability will be decided.