Trump cancels 25% tariffs on Indian goods

On Friday, US President Donald Trump took a decision to cancel additional 25% customs duties that he had previously imposed on Indian goods due to New Delhi’s continued purchase of Russian oil, while starting to implement a trade agreement reached by the two parties this week. According to an executive order signed by Trump, “India has pledged to stop importing Russian oil, either directly or indirectly.”

New Delhi also announced its intention to purchase American energy products and its commitment to “a framework with the United States to expand defense cooperation over the next ten years,” according to what was stated in the executive order.
The additional 25% US tariff will be lifted at 12:01 am EST on Saturday.

This decision comes days after Trump announced the conclusion of a trade agreement with India that provides for reducing customs duties on Indian goods in exchange for Prime Minister Narendra Modi’s pledge to stop buying Russian oil due to the war in Ukraine.

The agreement also stipulates that Washington will reduce the so-called “reciprocal” customs duties on Indian products to 18%, from 25%.

A joint statement issued by the White House added that India intends to purchase energy products, aircraft, precious metals, technical products, and coal from the United States worth $500 billion over the next five years.
This agreement alleviates the tension that has continued for months between Washington and New Delhi over the purchase of Russian oil, which Trump believes is financing a conflict he seeks to end.