Ambani Caught in the Crossfire as Trump Trains Tariff Guns on India

BACK IN JANUARY, India's richest man, Mukesh Ambani, and his wife were in Washington, attending a pre-inauguration dinner thrown for Donald Trump. In a photograph shared by Reliance Industries, all three beam for the camera. Seven months on, the US President is locked in a bitter trade skirmish with India, and Ambani is caught in the crossfire.

- Rakesh Sharma & PR Sanjay

Keen to narrow a trade deficit with India but simultaneously eager to press Vladimir Putin to strike a deal in Ukraine, Trump has homed in on India's purchases of Russian crude, demanding its refiners stop buying the barrels. In recent days, his trade advisor Peter Navarro and US treasury secretary Scott Bessent have gone further, centering criticism on "India's politically connected energy titans" and accusing them of war profiteering.

Neither Washington official named the billionaires in question—but the man at the heart of the storm is unquestionably Ambani, whose oil refining giant Reliance is now the largest single buyer of Russian crude in India, and who began long-term purchases from Moscow earlier this year. His sprawling conglomerate has made billions, even if not necessarily the $16 billion in "excess profit" suggested by Bessent.

"Geopolitical tensions, largely driven by the US and its allies' narrative on Russia, have unexpectedly made Reliance Industries temporary collateral damage," said Kranthi Bathini, equity strategist at WealthMills Securities. He added negative sentiment around the company should fade, especially if it receives expected backing from the Indian government, which has taken a defiant posture against Trump's trade assault.

Reliance is not a company that enjoys the spotlight and, wary of the unexpected scrutiny, has sought to minimize concerns. Internally, the comments have been dismissed as political theater, a person close to the company said. The group will not dramatically change its buying patterns, even if, like state-owned refiners, it will hedge its bets with more purchases from West Africa and West Asia, added the person. The stock has remained unfazed, and is now trading higher than it was before Navarro's comments. Reliance did not respond to a request for comment.