Enlarged energy supplies from America should serve India well

We will gain from a more-efficient market for oil and gas even as our stance on a green transition gains greater legitimacy

- Anil Kumar Jain is chairman, Petroleum and Natural Gas Regulatory Board.

The energetic kick-off of new policies by the US administration under President Donald Trump has shaken, if not stirred, the global economic cauldron a fair bit already, and continues to do so with much vigor. What began as levies on Chinese imports and on neighboring countries Canada and Mexico has now begun to rapidly engulf the world. The US has articulated its intent: it wants a leveling-up over import levies imposed by others on American goods, the development of its domestic manufacturing industry, and to push ahead with fossil-fuel mercantilism.

Thus far, the world's response has ranged from trade skirmishes to capitulation, marked by intense saber rattling. For example, the Trump administration suspended its 25% levy on goods from Canada and Mexico for a month. In return, Mexico agreed to provide more boots on the ground to secure its US border against cross-overs by illegal immigrants. On the other hand, China has retaliated with both tariffs as well as non-tariff measures, like anti-monopoly investigations on Google and export controls on certain metals. Trade conflagrations have heightened with affected nations issuing threats of potential retaliation, while the Trump administration refuses to relent.

The situation is fluid. The nature of this looming trade war is unprecedented on many dimensions. One of them is the way that energy markets will get affected. China has levied import tariffs on US fossil fuels—natural gas, coal, and oil.