Trump Targets Exports – But Leaves Energy Giant UNTOUCHED!

India and Reliance Industries remain resilient in the face of sweeping 50 percent U.S. tariffs that largely exclude the conglomerate’s energy-driven exports.

At a Glance

• The U.S. imposed 50 percent tariffs on two-thirds of India’s $90 billion in exports in response to New Delhi’s continued Russian oil imports.
• Reliance Industries, whose exports benefit from energy exemptions, avoided the tariffs despite sourcing nearly half its crude from Russia.
• India defends its oil purchases as critical for energy security and accuses the U.S. of hypocrisy.
• Indian response includes diplomatic balancing and projected increases in Russian crude imports.

Skirting Tariffs Through Energy Exemptions

The Trump administration’s 50 percent tariffs on Indian exports were framed as a response to New Delhi’s ongoing purchases of discounted Russian oil. However, these penalties largely exempt energy products—primarily Reliance Industries’ chief export category—effectively shielding the conglomerate from significant financial impact.

Reliance, which operates the world’s largest refinery and sources nearly half its crude from Russia, has continued to bolster ties with U.S. tech firms and expand into European markets. The company’s ability to sidestep the tariffs underscores its strategic positioning and influence within India’s economy.

Watch now: US raises India tariffs to 50 percent over Russian oil purchases

Strategic Autonomy Versus U.S. Economic Pressure

India’s government has defended its dependence on Russian oil as a necessity for ensuring affordable energy for its 1.4 billion citizens. Officials have rejected U.S. claims that India is profiteering from the imports, emphasizing adherence to global price caps and compliant trade norms.

At the same time, Prime Minister Modi’s reaffirmation of India’s “special” relationship with Russia—highlighted during his meetings with President Putin—signals India’s intent to maintain strategic autonomy despite mounting U.S. pressure.

Tangible Impacts and Future Trajectory

Despite the tariffs, Indian refiners are projected to increase Russian crude imports by 150,000–300,000 barrels per day in September 2025. This demonstrates that economic considerations and energy needs continue to outweigh diplomatic strains.

Markets have yet to fully absorb the effects of the tariffs. India’s small-scale exporters—including sectors like textiles, jewelry, and seafood—face steep losses in U.S. access, while Reliance’s exemption highlights disparities in economic resilience.

Summary

The U.S. tariffs were intended to punish India for its Russian oil ties but instead disproportionately impact small exporters while sparing Reliance Industries. India defends its energy strategy, reinforcing that balancing economics and sovereignty remains central to its policy. The differential impact on exporters suggests that strategic autonomy, not alignment with U.S. preferences, will continue shaping India’s path forward.

Sources

Wall Street Journal

Reuters

Associated Press