TASS: Russia seen as alternative market for Indian exports amid US tariff hike

Russia could become a key alternative market for Indian exports following the United States’ decision to raise tariffs on Indian goods, an Indian government source told the Russian news agency TASS on condition of anonymity.

The source said Indian exporters were already seeking new markets, starting with the domestic market, followed by South Asia, Africa, Central Asia and Russia, and stressed that a strategic approach was needed to expand into these regions. 

According to the official, exports to the US are already declining, as even with 25 per cent tariffs, Indian suppliers struggle to compete with countries such as Vietnam and Bangladesh, which face lower tariffs and offer more favourable trading terms.

The source added that US President Donald Trump might delay the implementation of the second phase of 25 per cent tariffs on India, scheduled to take effect on August 27, noting that Trump frequently changes deadlines and could easily push the date back by a month.

The US administration has introduced the additional 25 per cent duties in response to India’s purchase of Russian oil. Combined with an earlier 25 per cent duty, the total tariff on Indian goods will rise to 50 per cent, making them less competitive in the American market compared with exports from Türkiye, Thailand and Vietnam, which now face US tariffs of 15 per cent, 19 per cent and 20 per cent respectively.

Trump has previously argued that India has long sourced most of its military equipment from Russia and, along with China, is among the largest buyers of Russian energy.

The Indian Ministry of Foreign Affairs dismissed criticism from the US and the EU over Russian oil imports as unjustified, saying that Western countries had previously encouraged such trade and continued to buy goods and services from Russia themselves.

By Sabina Mammadli