Trump Tariffs Explained: If Donald Trump imposes tariffs on Indian goods, India can also use the tactic of increasing its purchases of American energy to lessen the negative impact.
Trump Tariffs Explained how impact?
Trade Balance Negotiation: India is a big crude oil buyer, and by purchasing more crude oil from the US, it would reduce the trade deficit that a reason the US uses to impose tariffs. Trade deficit is of lessened importance if India begets more oil from the USA and maybe even at less of a cost, then the tariff levied can be reviewed or even removed.
Diplomatic Leverage: The purchase of American oil by India would tie the economies of both countries closer together, so the struggle of Trump to come up with tariffs that will not only benefit the economy of America but also the employment sector as well becomes much harder. Trump Tariffs Explained
Indian oil macro-sector can articulate to the Trump administration the necessity for a re-assessment of tariffs on Indian exports so that they protect their export market in case India turns to U.S. oil as a significant buyer.
Alternative Concessions: A well-devised agreement may include lowering or scraping duties on Indian products like steel, aluminum, or textiles if India agrees to buy more U.S. oil to the US government. Trump Tariffs Explained
Supplier Diversification: In the past, Russia, Africa, and the Middle East were the leading providers of oil to India. However, the United States can provide more oil hence paving the way for trade negotiation and better energy security. Trump Tariffs Explained
To re-establish trade relations, India paid a lot of attention to American energy during the first term when Trump was leading them. India might feel like this is a viable force once again in the event that Trump is re-elected as well as the tariffs are imposed.
