DNA Decodes: India's stance on Trump's 100% tariff threat and whether New Delhi will snap ties if the US imposes the duties

In today’s episode of DNA, Zee News Managing Editor Rahul Sinha decodes the escalating India-US trade standoff after the U.S. House passed a bill empowering President Donald Trump to impose tariffs of up to 100% on countries importing Russian crude oil.

Tensions between New Delhi and Washington rose this week after the U.S. House of Representatives passed legislation giving President Donald Trump the authority to impose tariffs of up to 100% on countries that buy Russian crude oil. The measure, titled the Lindsey O. Graham Sanctioning Russia and Iran Act, passed the House by a 262–159 vote after earlier approval in the Senate. The bill now awaits President Trump’s signature. It targets major buyers of Russian energy, including India and China, as Washington tries to cut the money flowing to Moscow during the war.

New Delhi, however, has made clear that it will put India's energy needs first.

Watch video here: #DNAमित्रों | इस बार भारत ने यूएस को करारा 'जवाब' दिया है.. 100% टैरिफ पर ट्रंप को भारत की कड़ी चेतावनी

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India’s red line: "1.4 billion people first"

India’s Ministry of External Affairs (MEA) said Thursday that the country would continue buying energy based on its national requirements and market conditions.

"India remains firmly committed to ensuring energy security for its 1.4 billion people. It will continue to do so through diversified sourcing and on the basis of evolving market dynamics," the MEA stated.

The ministry also said Indian officials had warned senior U.S. counterparts about the possible impact of punitive trade measures. New Delhi cautioned that such action could damage India-US relations and disrupt international energy markets.

Why Russian oil matters to India

For India, Russian crude has become an important source of relatively cheaper oil.

The pressure is greater because of tensions in the Middle East and risks to shipping through the Strait of Hormuz. Global crude prices have climbed above $100 a barrel, making India's choice of suppliers even more sensitive.

Indian refiners currently depend on Russia for more than 40% of their crude imports. Losing access to that supply could increase India's oil import bill and put more pressure on fuel prices, transport costs and inflation.

That is why New Delhi has shown little willingness to change its buying decisions simply because of pressure from Washington.

What a 100% tariff could mean for the US

Supporters of the U.S. legislation see the tariff threat as a way to reduce Russia's oil revenues. But imposing such steep duties on Indian goods could also raise costs in the United States.

India exports more than $80 billion worth of goods to the U.S. each year, including pharmaceuticals, textiles, jewellery and refined petroleum products. A 100% tariff on affected imports could make those products considerably more expensive for American buyers.

Higher import costs could also add to inflationary pressure in the U.S. at a time when the Federal Reserve is trying to keep prices under control.

India could respond with tariffs of its own or look for ways to conduct more international trade in local currencies, reducing its dependence on dollar-based payment systems.

What happens next?

The bill gives Trump considerable authority, but it also contains a "national interest" waiver. That means the president could delay tariffs or exempt individual countries if imposing them would harm U.S. interests.

India, meanwhile, has made its position clear,i.e., its energy purchases will be based on the needs of its 1.4 billion people and conditions in the global market.

The next decision rests with Washington. How Trump uses the powers in the bill could determine whether the dispute remains focused on Russian oil or spills further into India-US trade.

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