India-US Tariff War / India's fuel export is out of the tariff list, these goods will not be subject to tariff

India-US Tariff War: Recently, the US has decided to exempt petroleum products such as diesel and aviation turbine fuel (ATF) imported from India from import duty (tariff). Apart from this, energy products such as crude oil, LNG, refined fuel, electricity and coal are also included in the list of exemptions. The decision comes after US President Donald Trump announced a 25 percent tariff on Indian goods, aimed at addressing existing trade barriers. However, Trump had also indicated that a separate penalty could be imposed due to India's energy and defense ties with Russia, but no information has been given in his signed executive order.

Other goods with tariff exemption

Apart from petroleum products, the US has also exempted several other goods imported from India from tariffs. These include:

Pharmaceutical products: Finished medicines such as tablets, injections, syrups and raw materials used in drug manufacturing.

Electronics and ICT products: Devices such as semiconductors, smartphones, SSDs, and computers.

This exemption is important for India's exporters, especially companies like Reliance Industries, which is the largest supplier of petroleum products to the US.

India's Petroleum Exports to US

According to official data, in the financial year 2024-25, India exported 48.6 lakh tonnes of petroleum products to the US, worth more than $4 billion. Reliance Industries has been a leader in this sector. Experts believe that keeping petroleum products in the list of tariff exemptions will keep the business of India and companies like Reliance running as usual.

India's Energy Trade with Russia

After Russia's attack on Ukraine in February 2022, India started buying Russian crude oil on a large scale at discounted rates. Historically, India has been importing most of its crude oil from West Asian countries like Iraq and Saudi Arabia, but India's import pattern changed due to the availability of cheaper oil from Russia. The US administration has not yet indicated any penalty on India's energy trade with Russia, which is a relief for the Indian economy and energy sector.

Future prospects

Experts say that if there is no ban or penalty on oil imports from Russia, it will be a positive situation for India. Also, tariff exemption on petroleum and other goods will further strengthen India-US trade relations. However, the possibility of any future policy change on India's energy and defense relations with Russia by the Trump administration cannot be completely ruled out.

This development in the trade and energy sector between India and the US is important in the context of global geopolitics and economic policies. To maintain a balanced trade relationship between the two countries, it is important that such policies are made in the future as well, which are mutually beneficial.