White House Removes Extra 25% Tariff on Indian Imports Linked to Russian Oil Purchases

Washington: The latest trade deal between India and America has created a stir in the global market. Amidst the long-standing tariff and trade tussle, both the countries have now reached an agreement which experts are calling a major economic and diplomatic victory for India. America has reduced the tariff on Indian goods to 18 percent, which was much higher earlier. Indian exporters are going to benefit directly from this, because now Indian products will become cheaper and more competitive in the American market.

Why did America reduce tariffs?

A White House official clarified that the additional 25 percent punitive duty imposed on India is also being removed. This duty was imposed because India bought oil from Russia. However, America's condition is that India will not only reduce purchases but will also take steps towards completely stopping the import of Russian oil. That means this deal is not limited to trade only, but geopolitical equations are also involved in it.

What did Trump say?

US President Donald Trump said in his social media post that the agreement has been reached on the basis of "friendship and respect" and will come into force immediately. He claimed that India will now buy more energy, technology and agricultural products from America. Trump described this as a step to further strengthen the relations between the two countries.

What was Modi's reaction?

Prime Minister Narendra Modi also welcomed this decision. He said that getting low tariffs on 'Made in India' products will give new strength to the country's industries and exports. According to him, the coming together of the world's two largest democratic economies is in the interest of the people of both countries.

What will be the benefit to India?

Experts believe that an 18 percent tariff can put India in a better position than competing countries like China, Pakistan, Bangladesh and Vietnam. Textile, pharma, engineering and manufacturing sectors can get huge benefits from this. Overall, this deal is not just a paper agreement but a concrete step to strengthen India's global trade strategy.