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. This move is expected to have a positive impact on the trade relations between the two countries. According to US Ambassador to India, Sergio Gor, the total tariff on India will now be 18%. This is a significant reduction from the earlier tariff rates, which included a 25% reciprocal tariff and an additional 25% penalty tariff.
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 critical of India’s move, citing concerns over Russia’s actions in Ukraine and its increasingly close ties with China. However, India had maintained that its decision to purchase oil from Russia was driven by its energy needs and economic considerations.
The removal of the penalty tariff is seen as a major concession by the US, and is expected to improve the trade relations between the two countries. The US Ambassador to India, Sergio Gor, confirmed the development in an interview, stating that the total tariff on India will now be 18%. This includes a reciprocal tariff of 18%, which is lower than the earlier rate of 25%.
The decision to remove the penalty tariff is expected to have a positive impact on India’s economy, particularly on its oil imports. India is one of the largest importers of oil in the world, and the removal of the penalty tariff will make it cheaper for the country to import oil from Russia. This, in turn, is expected to have a positive impact on India’s inflation rate and its overall economic growth.
The development is also seen as a significant diplomatic victory for India, which had been engaged in intense negotiations with the US over the past year. India had maintained that the penalty tariff was unfair and discriminatory, and had sought its removal. The US, on the other hand, had been seeking to persuade India to reduce its dependence on Russian oil and to diversify its energy sources.
The removal of the penalty tariff is also expected to have a positive impact on the bilateral relations between the US and India. The two countries have been seeking to strengthen their ties in recent years, particularly in the areas of defense and security. The US has been seeking to promote India as a major player in the Indo-Pacific region, and has been supporting its bid to become a permanent member of the United Nations Security Council.
The development is also seen as a significant concession by the US, which has been seeking to promote its own energy exports to India. The US has been seeking to increase its energy exports to India, particularly in the areas of liquefied natural gas (LNG) and crude oil. The removal of the penalty tariff is expected to make it easier for US energy companies to export their products to India.
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 the trade relations between the two countries. The decision is seen as a major concession by the US, and is expected to improve the bilateral relations between the two countries. The development is also expected to have a positive impact on India’s economy, particularly on its oil imports and inflation rate.
The US Ambassador to India, Sergio Gor, has confirmed that the total tariff on India will now be 18%, which includes a reciprocal tariff of 18%. This is a significant reduction from the earlier tariff rates, and is expected to make it cheaper for India to import oil from Russia. The development is a significant diplomatic victory for India, which had been engaged in intense negotiations with the US over the past year.
As the trade relations between the US and India continue to evolve, it will be interesting to see how the removal of the penalty tariff impacts the bilateral ties between the two countries. The US has been seeking to promote its own energy exports to India, and the removal of the penalty tariff is expected to make it easier for US energy companies to export their products to India.
The development is also expected to have a positive impact on the global energy market, particularly in the areas of oil and gas. The removal of the penalty tariff is expected to increase the demand for Russian oil, which could have a positive impact on the global energy market. The development is also expected to increase the competition in the global energy market, particularly in the areas of oil and gas.
In the end, 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 the trade relations between the US and India. The decision is seen as a major concession by the US, and is expected to improve the bilateral relations between the two countries. The development is also expected to have a positive impact on India’s economy, particularly on its oil imports and inflation rate.
News Source: https://www.ndtv.com/world-news/total-tariff-on-india-to-be-18-us-ambassador-sergio-gor-to-ndtv-10934286/amp/1
About the Author
