Trump removes penalty tariff imposed on India over Russia oil purchase
In a significant development, the United States has announced the removal of a 25% penalty tariff imposed on India over its purchase of Russian oil. This move comes as a relief to the Indian government, which had been facing increased tariffs on its exports to the US. The total tariff on India will now be 18%, as confirmed by US Ambassador to India Sergio Gor. This reduction in tariffs is expected to boost trade between the two countries and strengthen their economic ties.
The penalty tariff was imposed by US President Donald Trump last year, in addition to a 25% reciprocal tariff on India. The reciprocal tariff was imposed in response to India’s tariffs on certain US products, while the penalty tariff was specifically targeted at India’s purchase of Russian oil. The US had been critical of India’s decision to continue importing oil from Russia, despite Western sanctions on the country.
However, with the removal of the penalty tariff, the total tariff on India will now be 18%. This is a significant reduction from the earlier total tariff of 50%, which comprised the 25% reciprocal tariff and the 25% penalty tariff. The reduction in tariffs is expected to make Indian exports more competitive in the US market, and could lead to an increase in trade between the two countries.
The development is also seen as a positive sign for India-US relations, which have been under strain in recent months. The two countries have been negotiating a trade deal, but progress has been slow. The removal of the penalty tariff could be seen as a gesture of goodwill by the US, and could help to build momentum for the trade talks.
The US Ambassador to India, Sergio Gor, confirmed the reduction in tariffs in an interview with NDTV. “The total tariff on India will now be 18%,” he said. “We have removed the 25% penalty tariff, and have also lowered the reciprocal tariff from 25% to 18%.” Gor added that the US was committed to strengthening its economic ties with India, and that the reduction in tariffs was a step in that direction.
The Indian government has welcomed the move, saying that it would help to boost the country’s exports to the US. “We are pleased that the US has removed the penalty tariff,” said a government spokesperson. “This will make our exports more competitive in the US market, and will help to increase trade between the two countries.”
The reduction in tariffs is also expected to have a positive impact on the Indian economy. India is one of the largest exporters of goods to the US, and the reduction in tariffs could lead to an increase in exports. This, in turn, could help to boost economic growth and create jobs in the country.
However, some experts have cautioned that the reduction in tariffs may not have a significant impact on India’s trade with the US. “The reduction in tariffs is a positive development, but it may not have a major impact on India’s trade with the US,” said an economist. “The US market is highly competitive, and Indian exporters will still face significant challenges in terms of quality and pricing.”
Despite these challenges, the removal of the penalty tariff is seen as a positive development for India-US relations. The two countries have a long history of economic cooperation, and the reduction in tariffs could help to strengthen their ties. The US is one of India’s largest trading partners, and the two countries have a significant amount of trade in goods and services.
In recent years, India and the US have been working to strengthen their economic ties. The two countries have signed several agreements on trade and investment, and have been negotiating a comprehensive trade deal. The removal of the penalty tariff could be seen as a step in this direction, and could help to build momentum for the trade talks.
In conclusion, the removal of the penalty tariff imposed on India over its purchase of Russian oil is a significant development that could boost trade between the two countries. The total tariff on India will now be 18%, which is a significant reduction from the earlier total tariff of 50%. The development is expected to have a positive impact on the Indian economy, and could help to strengthen India-US relations. As the two countries continue to negotiate a trade deal, the removal of the penalty tariff could be seen as a gesture of goodwill by the US, and could help to build momentum for the trade talks.
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