Market expert Ajay Bagga downplayed the impact of U.S. President Donald Trump’s announced 25% tariffs and an unspecified “penalty” on India for its Russian oil and arms purchases, stating they will have “very little impact” on India’s markets and economy. Speaking after Trump’s Truth Social post, Bagga predicted markets would quickly dismiss the news, emphasizing that the tariffs align with Trump’s broader strategy targeting countries like Japan, Australia, and the EU, as well as free trade partners.

The penalty, tied to India’s import of 9 million barrels of Russian oil daily, could spike global oil prices, Bagga warned, potentially fueling U.S. inflation as American oil companies raise prices.

He described the tariffs as a “negotiation tactic” and a “letdown,” noting expectations for a U.S. team to negotiate a Bilateral Trade Agreement (BTA) with India in August, possibly culminating in Trump signing it during a September QUAD meeting visit. “This is a maximalist position,” Bagga said, suggesting India could negotiate the tariffs down to 15%, as the EU has done.

Bagga estimated the tariffs’ impact on India’s $83 billion trade volume, highlighting challenges for small and medium exporters. He also pointed to past U.S. tariffs on Indian steel, aluminum, and medical imports as ongoing pain points. Despite the rhetoric, Bagga urged calm, stating, “We should not be humiliated by this, it’s okay,” framing the move as a predictable part of Trump’s trade playbook.

Also Read: Trump Slaps India with Tariffs and Mystery Penalty!

Also Read: Epstein’s Ghost Haunts Trump’s Presidency