Mukesh Ambani to save India from Trump’s Tariffs? bets BIG on…, what’s India’s richest man’s strategy?
GH News July 08, 2025 03:06 PM

Mukesh Ambani Asia’s richest man is moving swiftly to secure American ethane gas as a safeguard against President Trump’s trade war.
Reliance Industries his conglomerate imports 1.6 million tonnes of ethane each year from U.S. shale fields transporting it in massive tankers to its manufacturing facilities in Gujarat. This low-cost gas serves as an alternative to more expensive oil-based naphtha in plastic production resulting in annual savings of around $450 million.
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Trump was threatening 26% ‘reciprocal tariffs’ on Indian goods by July 9. During this time only Ambani has made India a major buyer of US energy. It will reduce tensions over India’s $43 billion trade surplus with America. He has started a new strategy of a fleet of six specialized ethane tankers according to a Bloomberg report.
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GAIL an Indian govt run organisation is also trying to follow Ambani’s strategy to be in the race. It sought 20-year contracts for US ethane tankers after its natural gas supply was reduced due to the government policies and it reduced its profits.
Following Reliances path GAIL may also transport ethane through pipelines to its chemical plants replacing naphtha as a feedstock. The transition is critical as ethane is nearly half the cost of naphtha and produces more plastic per tonne.
As Qatar now charges a premium for ethane in its gas exports to India companies like GAIL are turning to U.S. supplies as a more viable option. Analysts describe this as a “permanent shift” driven by the global surge of shale gas.