Trump removes penalty tariff imposed on India over Russia oil purchase
In a significant development, the United States has announced the removal of the penalty tariff imposed on India over its purchase of Russian oil. The total tariff on India will now be 18%, as confirmed by US Ambassador to India, Sergio Gor. This move is seen as a major concession to India, which had been facing a total tariff of 50% on its exports to the US.
The penalty tariff was imposed by US President Donald Trump last year, in response to India’s decision to purchase oil from Russia. At the time, Trump had imposed a 25% reciprocal tariff on India, in addition to an additional 25% penalty tariff. The reciprocal tariff was imposed in response to India’s tariffs on US goods, while the penalty tariff was specifically targeted at India’s purchase of Russian oil.
However, in a surprise move, Trump has now removed the 25% penalty tariff, apart from lowering the reciprocal tariff from 25% to 18%. This means that the total tariff on India will now be 18%, which is a significant reduction from the earlier 50%. The move is expected to boost India’s exports to the US, and is seen as a major victory for the Indian government, which had been lobbying hard to get the tariffs removed.
The removal of the penalty tariff is also seen as a sign of the improving relations between the US and India. The two countries have been working to strengthen their economic ties, and the removal of the tariff is expected to further boost trade between the two nations. India is one of the largest exporters of goods to the US, and the reduction in tariffs is expected to make Indian goods more competitive in the US market.
The US Ambassador to India, Sergio Gor, confirmed the development in an interview, stating that the total tariff on India will now be 18%. Gor also praised the Indian government for its efforts to strengthen economic ties with the US, and expressed optimism about the future of US-India trade relations.
The removal of the penalty tariff is also expected to have a positive impact on India’s economy. The country has been facing a slowdown in recent months, and the reduction in tariffs is expected to provide a much-needed boost to the economy. The Indian government has been working to boost exports, and the removal of the tariff is expected to make Indian goods more competitive in the global market.
The development is also seen as a sign of the US’s willingness to engage with India on trade issues. The two countries have been negotiating a trade deal, and the removal of the tariff is expected to pave the way for further negotiations. The US has been pushing India to open up its markets to US goods, and the removal of the tariff is seen as a sign of India’s willingness to engage with the US on trade issues.
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 boost India’s exports to the US. The total tariff on India will now be 18%, which is a significant reduction from the earlier 50%. The move is seen as a major concession to India, and is expected to further boost trade between the two nations. The development is also seen as a sign of the improving relations between the US and India, and is expected to have a positive impact on India’s economy.
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