The economist spoke about the geopolitical consequences of the US tariff policy for India

The new US tariff policy, directed against countries cooperating with Russia in the energy sector, has not only an economic but also a geostrategic impact. Igbal Guliyev, Dean of the MGIMO Faculty of Financial Economics, Doctor of Economics, told Izvestia about this on August 8.

In the short term, the consequences for India may include increased tensions in financial, economic and trade relations with the United States. Guliyev stressed that this will lead to higher costs for Indian businesses, and may also cause an increase in the cost of imported energy resources. However, according to the expert, the deeper consequences will be noticeable in the long term.

"These actions by the United States are pushing India to rethink its foreign economic strategy. We are seeing signs of rapprochement with China and our country (primarily within the framework of the BRICS multilateral formats). This opens the way to the creation of alternative financial settlement mechanisms (bypassing the US dollar), deepening investment cooperation and developing infrastructure for oil and gas supplies regardless of the West," Guliyev said.

The expert added that against the background of US pressure, India's internal consolidation may intensify, which will focus on a strategy of energy independence. This includes diversifying energy supplies, developing domestic processing and generation, and accelerating the transition to renewable energy sources. Guliyev also pointed out that such measures are in line with global trends in the energy sector and give India a chance to strengthen its position in the global market.

Commodity breakthrough: how the tariff conflict between the United States and India will affect global trade

To what extent Russia benefits from the cooling of relations between New Delhi and Washington

In general, according to Guliyev, the global political arena is moving towards the formation of a multipolar architecture. In this context, India, which has significant demographic, economic, and geopolitical potential, will play an increasingly autonomous role while maintaining pragmatism in relations with Washington, Moscow, and Beijing.

"US pressure is likely to accelerate the formation of alternative economic alliances and strengthen the desire of the countries of the Global South for strategic autonomy. And leading players such as India and Russia will strive to minimize dependence on external pressure and use it as an incentive to deepen mutual ties," Guliyev concluded.

On August 6, US President Donald Trump signed a decree imposing an additional 25% duty on imports from India. The White House clarified that this measure was introduced in connection with India's "direct or indirect" import of petroleum products from the Russian Federation.

Shortly after, the chairman of the opposition Indian National Congress party, Rahul Gandhi, said that the US imposition of trade duties on imports of Indian goods was economic blackmail.

All important news is on the Izvestia channel in the MAX messenger.