Trump Removes Penalty Tariff Imposed on India over Russia Oil Purchase
In a significant development, the United States has announced that it will be removing the penalty tariff imposed on India over its purchase of Russian oil. According to US Ambassador to India Sergio Gor, the total tariff on India will now be 18%. This move comes after US President Donald Trump had last year imposed a 25% reciprocal tariff on India and an additional 25% as penalty over India’s purchase of Russian oil.
The penalty tariff was imposed by the Trump administration in response to India’s decision to purchase oil from Russia, despite the US sanctions on Russian oil exports. The US had been trying to isolate Russia economically, and India’s decision to continue purchasing oil from Russia was seen as a blow to these efforts. However, with the removal of the penalty tariff, the total tariff on India will now be 18%, which is a significant reduction from the earlier 50% (25% reciprocal tariff + 25% penalty tariff).
This move is expected to have a positive impact on India-US trade relations, which had been strained due to the tariff dispute. The removal of the penalty tariff is also expected to boost Indian exports to the US, as it will make Indian goods more competitive in the US market. The US is one of India’s largest trading partners, and the reduction in tariffs is expected to increase trade between the two countries.
The decision to remove the penalty tariff is also seen as a significant concession by the US, as it had been insisting that India should reduce its dependence on Russian oil and instead purchase oil from the US. However, India had been resistant to this demand, citing its energy security needs and the fact that Russian oil is cheaper than US oil.
The removal of the penalty tariff is also expected to have a positive impact on the Indian economy, which has been facing significant challenges due to the COVID-19 pandemic. The reduction in tariffs will make Indian goods more competitive in the global market, which will help to boost exports and stimulate economic growth.
In an interview with NDTV, US Ambassador to India Sergio Gor confirmed that the total tariff on India will now be 18%. He stated that the US has removed the 25% penalty tariff apart from lowering the reciprocal tariff from 25% to 18%. This move is expected to have a significant impact on India-US trade relations and is seen as a major concession by the US.
The removal of the penalty tariff is also expected to have a positive impact on the global economy, as it will help to reduce trade tensions between the US and India. The US has been engaged in a trade war with several countries, including China, and the removal of the penalty tariff on India is seen as a significant step towards reducing trade tensions.
In conclusion, the removal of the penalty tariff imposed on India over its purchase of Russian oil is a significant development that is expected to have a positive impact on India-US trade relations and the global economy. The reduction in tariffs will make Indian goods more competitive in the US market, which will help to boost exports and stimulate economic growth. The move is also seen as a significant concession by the US, as it had been insisting that India should reduce its dependence on Russian oil and instead purchase oil from the US.
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