US President Donald Trump has taken action to remove an additional 25 percent tariff on goods from India, which was initially imposed due to India’s purchases of Russian oil. This move is part of implementing a trade agreement that was recently announced.
President Trump signed an executive order stating that India has agreed to cease both direct and indirect imports of Russian oil. In return, India has committed to buying energy products from the United States and has also pledged to enhance defense cooperation with the US over the upcoming decade.
The 25 percent tariff imposed by the US will be lifted at 12:01 am Eastern Time on Saturday as a result of this executive order.
This decision follows President Trump’s announcement of a trade deal with India, where the Indian Prime Minister assured to halt the procurement of Russian oil amidst the conflict in Ukraine. As per the deal, reciprocal tariffs on Indian goods will be reduced from 25 percent to 18 percent.
The implementation details of this tariff reduction are yet to be finalized.
Furthermore, the agreement entails the elimination of tariffs on specific aircraft and components, as per a joint statement issued by the White House on Friday. The statement also reveals India’s commitment to purchasing $500 billion worth of US energy products, aircraft and parts, precious metals, tech products, and coking coal within the next five years.
