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. This decision comes as a major relief to India, which had been facing a total tariff of 50% on its exports to the US. The total tariff on India will now be 18%, US Ambassador to India Sergio Gor confirmed in a recent statement.
The penalty tariff was imposed by US President Donald Trump last year, in response to India’s decision to purchase oil from Russia. The US had been trying to isolate Russia economically, following its invasion of Ukraine, and had imposed sanctions on several Russian companies and individuals. However, India had continued to purchase oil from Russia, citing its energy needs and the need to diversify its energy sources.
As a result, the US had imposed a 25% reciprocal tariff on India, as well as an additional 25% penalty tariff. The reciprocal tariff was imposed in response to India’s tariffs on US goods, while the penalty tariff was imposed specifically in response to India’s purchase of Russian oil. The total tariff of 50% had made Indian exports to the US highly uncompetitive, and had resulted in significant losses for Indian exporters.
However, with the removal of the penalty tariff, the total tariff on India will now be 18%. This is a significant reduction, and is expected to provide a major boost to Indian exporters. The US Ambassador to India, Sergio Gor, confirmed the development in a statement, saying that the total tariff on India would now be 18%.
The removal of the penalty tariff is seen as a major victory for India, which had been lobbying hard to get the tariffs removed. India had argued that the tariffs were unfair and discriminatory, and had pointed out that it was not possible for the country to suddenly stop purchasing oil from Russia. India had also pointed out that it was diversifying its energy sources, and was increasing its purchases of oil from other countries, including the US.
The decision to remove the penalty tariff is also seen as a reflection of the growing strategic partnership between the US and India. The two countries have been working closely together on a range of issues, including defense, trade, and counter-terrorism. The US has been keen to strengthen its ties with India, which is seen as a key partner in the region.
The removal of the penalty tariff is also expected to have a positive impact on the Indian economy. Indian exporters had been facing significant challenges due to the high tariffs, and the removal of the penalty tariff is expected to provide a major boost to their competitiveness. The decision is also expected to result in increased trade between the US and India, which is likely to benefit both countries.
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 have a major impact on the Indian economy. The decision reflects the growing strategic partnership between the US and India, and is seen as a major victory for India, which had been lobbying hard to get the tariffs removed. With the total tariff on India now at 18%, Indian exporters are expected to become more competitive, and trade between the US and India is likely to increase.