India has 20 days to avoid 50% Trump fees. What are its options?

On Wednesday, Donald Trump doubled American tariffs to India to 50%, down from 25%, penalising Delhi for buying Russian oil a move India called the unfair “ ” and “unjustified”.

The tariffs aim to lower Russia's revenues from oil and force Putin to make a ceasefire.

The new rate will take effect in 21 days, so 27 August.

This makes India the trading partner “taxable to” of the US in Asia and puts it together with Brazil, another nation that faces high US tariffs amid strained relations, sends out Telegrafi.

What will be the impact, and what are the options?

India insists its imports are driven by market factors and are vital to its energy security, but tariffs threaten to hit exports and Indian growth severely.

Almost all $88.5 billion in annual exports of Indian goods to the US are at risk of becoming commercially unstable if these rates continue.

If effective, the tariff will be similar to a non-x0 trade embargo and will lead to a sudden halt of affected export products”, Japanese Intermediation firm Nomura said in a note.

The US are India's main export market, representing 18% of exports and 2.2% of GDP. A 25% fee could lower GDP by 0.2-0.4%, risking growth to drop below 6% this year.

India's electronics and pharmaceuticals exports remain exempt from additional tariffs at the moment, but the impact will be felt in India within the country “with exports requiring much work like textiles, precious stones and jewelry that will fall”, Asia Decodedle Consulsis in Singapore told BBC.

Meanwhile, former governor of India's central bank, Urjit Patel, said India's worst <x0-edge” has been materialised with the latest announcement.

“It is hoped that this will be short-term and that talks about a trade agreement expected to mark progress this month will continue. Otherwise, it is likely that an unnecessary trade struggle, whose conditions are difficult to measure at this early point”, wrote Mr. Pattel in a post in LinkedIn.

The main question is whether Prime Minister Narendra Modi's government will quietly abandon trade ties with Russia to avoid “punishment against Russia” or will stand firm against Russia The United States.

India's “Efforts to reduce its dependence on Russian military equipment and diversify oil imports precede pressure from the Trump administration, so Delhi may be able to provide some reconciliation gestures in line with its existing foreign policy conduct”, according to Dr. Chietheg Bajpaee of Chatham House.

He says that the relationship is in a <x0 management framework”, losing the strategic importance of the Cold War era, but Russia will remain a key partner for India in the foreseeable future.

However, some experts believe Trump's recent actions give India an opportunity to review its strategic ties.

If there is something, US actions can “review India's strategic expansion, deepening ties with Russia, China and many other countries”, says Ayay Srivastava of the Global Trade Research Initiative (GTRI), a group of headquarters opinions in Delhi.

Mode will visit China for the regional summit of the Shanghai Co-operation Organisation (SCO), the first of which since the deadly Galwan border clashes in 2020.

Some suggest that a revival of the India-Russia-Kine trilateral talks may be on the table.

The immediate focus is on the August trade talks, while an American team visits India.

Negotiations have previously stalled on agriculture and milk sectors where the United States requires greater access, but India remains firm. /Periscope/