Why oil and gas could help India blunt Trump's reciprocal tariffs
Published On Feb 13, 2025, 7:56 AM
India's Prime Minister Narendra Modi is visiting the White House to discuss trade, particularly regarding tariffs imposed by President Trump. A significant element of the talks is the energy trade, as India is a major importer of U.S. oil and gas. Experts believe that discussions about increasing energy imports from the U.S. could help mitigate the impact of Trump's proposed tariffs, especially given the existing trade deficit between the two nations. India currently depends on relatively cheaper energy imports from Russia, but purchasing more from the U.S. could balance out tariff issues. The overall sentiment is that energy trade negotiations will play a crucial role in the outcomes of the discussions between Modi and Trump.
Stock Forecasts
XLE
Positive
The relationship between U.S. and India is likely to strengthen, particularly in the energy sector, which could promote U.S. oil and gas companies. As India explores increasing imports from the U.S., this could potentially boost prices and demand for American oil and gas exports.
OXY
Negative
Given the ongoing trade negotiations and Trump's focus on tariffs, U.S. energy companies that are heavily reliant on foreign exports may initially face uncertainty. However, the overall sentiment remains cautious yet positive as the talks could ultimately lead to favorable energy import agreements. Companies that might be more sensitive to tariff implications could see some volatility in stock prices during this period.
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