Newsographics
Begin typing your search above and press return to search.

"Mukesh Ambani's Trump Tariff Shield? Reliance Bets Big on US Trade"

Mukesh Ambanis Trump Tariff Shield? Reliance Bets Big on US Trade
X

By : Krishna Mishra

  |  8 July 2025 12:32 PM IST

**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.

Next Story
Similar Posts