The Indian rupee hits an all-time low due to elevated US tariffs.

The ongoing US-India trade tensions have been making headlines, with the latest development being the imposition of a 25% tariff on Indian oil imports by President Donald Trump, effective from August 27th. This move, following the previous tariffs on Indian textile, footwear, and jewelry exports, has been deemed unjustified by India's Ministry of External Affairs.

In a bid to mitigate the impact of these tariffs, India is looking towards Russia for potential liquefied natural gas (LNG) supplies. On August 20th, Russia's Foreign Minister, Sergei Lavrov, stated that Russia and India are interested in developing joint energy projects in the Far East. Additionally, the two nations are also exploring opportunities for collaboration on the Arctic shelf.

Russia's First Deputy Prime Minister, Denis Manturov, noted that Russia maintains its exports of oil, coal, and petroleum products to India, suggesting that the country is not entirely reliant on the US market.

The US-India trade negotiations have been a hot topic in August 2022, but no significant statements have been made by Russian government officials regarding these negotiations in the available search results. However, US Secretary of the Treasury, Steve Mnuchin, expressed confidence that both sides would reach an agreement.

The trade tensions have taken a toll on India's economy. According to Citigroup, India's annual economic growth could decrease by 0.6-0.8 percentage points due to these new tariffs. The rupee has also been affected, hitting a new historical low on August 29th. The USD/INR exchange rate increased by 0.8% on the same day, reaching 88.27 Indian rupees per dollar.

Amidst these challenges, India's Minister Subrahmanyam Jaishankar stated that trade negotiations with the US were progressing on August 23rd. The Kremlin, on the other hand, stated that the US pressure on India effectively constitutes a threat.

As the situation unfolds, it is clear that the US-India trade tensions and potential Russian energy collaborations are creating a complex web that will shape the economic landscape of both nations in the near future.