India-US Trade Deal: US President Donald Trump has removed the 25% tariffs it imposed on India for purchasing Russian oil, citing that the country has undertaken "significant steps" and has committed to stop directly or indirectly importing oil from Moscow. Both countries released a joint statement early morning on Saturday, Feb. 7, to unveil an interim trade deal framework after Trump announced that the trade deal tariff rate for India is lowered to 18% from the earlier 50%.
"I have received additional information and recommendations from senior officials regarding India's efforts to address the national emergency described in Executive Order 14066. Specifically, India has committed to stop directly or indirectly importing Russian Federation oil, has represented that it will purchase energy products from the United States, and has recently committed to a framework with the United States to expand defence cooperation over the next 10 years," Trump said in an executive order on Friday.
The US President said that after considering the information and recommendations provided to him, he has determined that "India has taken significant steps to address the national emergency described in Executive Order 14066 and to align sufficiently with the United States on national security, foreign policy, and economic matters. Accordingly, I have determined to eliminate the additional ad valorem rate of duty imposed on imports of articles of India,'' said Trump in his statement.
India's purchases of Russian oil have been a major point of discussion in trade talks between Washington and New Delhi for the last six months. While the Ministry of Commerce didn't confirm Trump's statement in the Executive Order that the country will halt purchases of Russian oil, the US directives will help further ease tensions between the two countries, as they work to implement the provisions of the agreement that Trump announced after a phone call with Prime Minister Narendra Modi.
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