US President Donald Trump on Friday lifted an additional 25 percent tariff imposed on Indian goods over New Delhi’s purchases of Russian oil, implementing a trade deal announced earlier this week, reports AFP.
“India has committed to stop directly or indirectly importing Russian Federation oil,” according to an executive order signed by Trump.
The order also stated that India has agreed to purchase US energy products and has “recently committed to a framework with the United States to expand defense cooperation over the next 10 years.”
The additional 25 percent duty will be removed at 12:01 am Eastern Time on Saturday.
The executive order follows Trump’s announcement of a broader trade agreement to reduce tariffs on India. He said Prime Minister Narendra Modi had promised to halt Russian oil purchases amid the war in Ukraine.
Under the deal, Washington will also cut “reciprocal” tariffs on Indian products to 18 percent, down from 25 percent, although the timing of that reduction has yet to be announced.
Other provisions include the removal of tariffs on certain aircraft and aircraft parts, according to a joint statement released by the White House on Friday.
The statement added that India intends to purchase $500 billion of US energy products, aircraft and parts, precious metals, technology products, and coking coal over the next five years.
The move marks a significant reduction in US tariffs on Indian goods, down from 50 percent late last year.
The agreement eases months of tension over India’s oil purchases from Russia, which Washington says help fund a conflict it is seeking to end. It also restores close ties between Trump and Modi, a fellow right-wing populist whom the US president has described as “one of my greatest friends.”
The 18 percent tariff rate gives Indian exporters a slight advantage in the US market over regional competitors facing duties of around 19 percent to 20 percent, said Wendy Cutler, senior vice president at the Asia Society Policy Institute.
Bd-pratidin English/ Jisan
