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%, US Ambassador to India Sergio Gor confirmed. This move is expected to have a positive impact on the trade relations between the two countries.
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. However, in a recent decision, Trump has removed the 25% penalty tariff apart from lowering the reciprocal tariff from 25% to 18%. This reduction in tariff is seen as a major concession to India, which had been negotiating with the US to remove the penalty tariff.
The imposition of the penalty tariff had been a major point of contention between the two countries. India had argued that the tariff was unfair and would harm its economy. The Indian government had been in talks with the US administration to resolve the issue, and it seems that these efforts have finally borne fruit.
The reduction in tariff is expected to benefit Indian exporters, who had been facing difficulties due to the high tariff rates. The Indian government has welcomed the move, saying that it would help to boost exports and improve trade relations with the US.
The US Ambassador to India, Sergio Gor, confirmed the reduction in tariff in an interview with NDTV. “The total tariff on India will now be 18%,” he said. “We have removed the 25% penalty tariff and reduced the reciprocal tariff from 25% to 18%.” Gor added that the move was a reflection of the strong trade relations between the two countries and the US administration’s commitment to reducing barriers to trade.
The removal of the penalty tariff is also seen as a significant development in the context of India’s energy security. India has been importing oil from Russia, which has been a major supplier of crude oil to the country. The imposition of the penalty tariff had raised concerns about the impact on India’s energy security, but with the removal of the tariff, these concerns have been alleviated.
The reduction in tariff is also expected to have a positive impact on the Indian economy. The high tariff rates had been a major concern for Indian exporters, who had been facing difficulties in competing with exporters from other countries. With the reduction in tariff, Indian exporters are expected to become more competitive, which could lead to an increase in exports and a boost to the economy.
The move is also seen as a significant development in the context of the ongoing trade tensions between the US and other countries. The US has been imposing tariffs on imports from several countries, including China, in an effort to reduce its trade deficit. However, the removal of the penalty tariff on India suggests that the US administration is willing to make concessions to countries that are willing to work with it to reduce trade barriers.
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 trade relations between the two countries. The reduction in tariff is expected to benefit Indian exporters and boost the economy. The move is also seen as a reflection of the strong trade relations between the two countries and the US administration’s commitment to reducing barriers to trade.
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