MOSCOW, August 6. /TASS/. India will face consequences whether it reaches out to Washington and gives up Russian oil or resists the US’ pressure, Chief Economist at the Stolypin Institute for Economic Growth Boris Kopeikin told TASS.
US President Donald Trump said on Tuesday that Washington would raise customs duties on India in the next 24 hours due to the country's purchases of Russian oil. On Wednesday, Trump will make a statement from the Oval Office of the White House. The topic of the speech has not been disclosed, though a number of American media outlets have suggested that it may focus on additional customs duties on foreign products.
The US is an important market for India, which accounted for almost 20% of all exports, or about 2% of GDP, last year, Kopeikin said.
"A drop in supplies due to tariffs would be a serious blow for the country, given its sizable trade deficit. At the same time, walking away from Russian oil would come at a steep price. Either way, India is likely to face a sharp rise in costs," the expert said.
This situation also includes an important political component as it requires Trump to back up his words with actions, and the Indian leadership to defend its interests and resist external pressure, he added. "Meanwhile it is significant that there are far fewer public threats against China," Kopeikin noted.