Trump Removes Penalty Tariff Imposed on India Over Russia Oil Purchase
In a significant development, US President Donald Trump has announced the removal of the 25% penalty tariff imposed on India over its purchase of Russian oil. The move is expected to provide relief to Indian businesses and consumers, who were facing higher costs due to the tariffs. The total tariff on India will now be 18%, as confirmed by US Ambassador to India, Sergio Gor.
Last year, Trump had imposed a 25% reciprocal tariff on India, in addition to an extra 25% penalty tariff, citing India’s purchase of Russian oil as the reason. The reciprocal tariff was imposed in response to India’s tariffs on certain US goods, while the penalty tariff was specifically targeted at India’s energy imports from Russia.
The removal of the penalty tariff is a major concession by the US, and it is expected to improve trade relations between the two countries. India has been a significant buyer of Russian oil, and the penalty tariff had increased the cost of these imports. With the removal of the penalty tariff, Indian businesses will now face lower costs, which is expected to boost economic activity.
The reduction in tariffs is also expected to have a positive impact on the Indian economy, which has been facing a slowdown in recent times. The lower tariffs will make Indian exports more competitive in the US market, which is one of the largest markets for Indian goods. This is expected to provide a boost to Indian exporters, who have been facing challenges due to the ongoing trade tensions between the US and other countries.
US Ambassador to India, Sergio Gor, confirmed the development in an interview, stating that the total tariff on India will now be 18%. This is a significant reduction from the earlier tariff of 50%, which included the reciprocal tariff and the penalty tariff. The reduction in tariffs is expected to improve trade relations between the US and India, and it 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 energy market. India is one of the largest buyers of Russian oil, and the penalty tariff had increased the cost of these imports. With the removal of the penalty tariff, India is expected to continue buying Russian oil, which will help to stabilize the global energy market.
The development is also expected to have a positive impact on the relationship between the US and India. The two countries have been working to improve their trade relations, and the removal of the penalty tariff is seen as a major step in this direction. The US has been pushing India to reduce its tariffs on certain US goods, and the removal of the penalty tariff is expected to pave the way for further trade negotiations between the two countries.
In recent times, the US and India have been working to improve their trade relations, with a focus on reducing tariffs and increasing trade volumes. The two countries have been negotiating a trade deal, which is expected to provide a boost to bilateral trade. The removal of the penalty tariff is seen as a major concession by the US, and it is expected to pave the way for further trade negotiations between the two countries.
The development is also expected to have a positive impact on the Indian currency, the rupee. The removal of the penalty tariff is expected to reduce the cost of imports, which will help to stabilize the rupee. The Indian currency has been facing pressure in recent times, due to the ongoing trade tensions between the US and other countries. The removal of the penalty tariff is expected to provide a boost to the rupee, which will help to stabilize the currency.
In conclusion, the removal of the penalty tariff imposed on India over its purchase of Russian oil is a significant development, which is expected to provide relief to Indian businesses and consumers. The total tariff on India will now be 18%, which is a significant reduction from the earlier tariff of 50%. The development is expected to improve trade relations between the US and India, and it 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 energy market, and it is seen as a major step in the direction of improving trade relations between the US and India.
News Source: https://www.ndtv.com/world-news/total-tariff-on-india-to-be-18-us-ambassador-sergio-gor-to-ndtv-10934286/amp/1
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