With Trump threatening 26% “reciprocal tariffs” on Indian goods by July 9, Ambani’s bet positions India as a key buyer of US energy, potentially easing tensions over India’s $43 billion trade surplus with America. His fleet of six specialized ethane tankers now anchors this strategy, according to a Bloomberg report.
India’s state-run GAIL is also trying to replicate Ambani’s tactics to stay ahead in the race. It just sought 20-year contracts for US ethane tankers after government policies slashed its natural gas supply, hurting profits.
Like Reliance, GAIL will pipe ethane to its chemical plants to replace naphtha. The shift is urgent: Ethane costs half as much as naphtha and produces more plastic per tonne. Even Qatar now charges extra for ethane in gas sold to India, forcing firms like GAIL to seek US alternatives. Analysts call this a “permanent shift” as shale gas floods global markets.
Trump’s trade wars make Ambani’s move timely. China once bought most US ethane, but Trump’s tariffs and “decoupling” push have stalled deals. India now grabs this surplus, though it can’t match China’s scale.
Meanwhile, Apple’s plan to make iPhones in India faces Trump’s wrath over “massive tariffs,” showing New Delhi’s precarious position. By boosting US energy purchases, India hopes to avoid auto and textile tariffs. Reliance’s pipeline network and new ships strengthen its role as a “pressure valve” in US-India trade talks.
The Ambani-Trump connection runs deep. Ivanka attended Ambani’s son’s $600 million wedding, while Trump hosted the family at his pre-inauguration gala. Now, their interests align commercially: Trump needs foreign buyers for US shale gas, while Ambani seeks cheap raw materials.
