"Mukesh Ambani's Trump Tariff Shield? Reliance Bets Big on US Trade"
By : Krishna Mishra
**Mukesh Ambani Moves Fast to Secure US Ethane Amid Trump Tariff Threat**
Asia’s richest man, **Mukesh Ambani**, is strategically shielding Reliance Industries from potential fallout of former U.S. President **Donald Trump’s tariff threats** by locking in steady supplies of **American ethane gas**.
### 🇺🇸 **Reliance Bets Big on US Ethane**
Reliance currently **imports 1.6 million tonnes of ethane annually** from U.S. shale fields, shipping the gas in **massive specialized tankers** to its giant manufacturing hub in **Gujarat**. Ethane, a **cheaper alternative to oil-based naphtha**, is used in plastic production and helps Reliance save nearly **-$450 million every year**.
This calculated move also comes at a time when Trump had proposed **“reciprocal tariffs” of up to 26%** on Indian goods, aiming to narrow America’s **-$43 billion trade deficit with India**. In response, Ambani positioned India as a major importer of U.S. energy — a move that analysts believe could ease trade tensions.
According to **Bloomberg**, Reliance has now deployed **a fleet of six custom-built ethane tankers**, ensuring a reliable supply chain from the U.S. to India.
### 🔁 **GAIL Follows Reliance’s Playbook**
India’s state-run **GAIL (Gas Authority of India Limited)** is also adapting. After facing **profit declines due to domestic supply constraints**, GAIL is exploring **20-year contracts** for U.S. ethane shipments.
Like Reliance, GAIL is considering using pipelines to **transport ethane to its chemical plants**, replacing costlier naphtha. The cost advantage is clear: **ethane is nearly 50% cheaper** than naphtha and produces **more plastic per tonne of input**.
### 🌍 **Shifting Global Supply Chains**
With **Qatar now charging a premium** on ethane exports to India, American shale gas has become the **preferred alternative**. Analysts believe this reflects a **“permanent shift”** in India’s energy sourcing strategy, influenced by the global expansion of U.S. shale production.
Mukesh Ambani’s foresight in energy procurement not only gives Reliance a competitive edge but also positions India as a significant player in the evolving **global energy trade** — even amidst trade tensions and shifting geopolitical winds.