US Tariffs Update: Now India has reduced its oil purchase from Moscow to a great extent and considering the current situation, the threat of imposing 500 percent tariff on India seems almost over.
Add informalnewz.com as a Preferred Source
India-US Trade Deal: Recently, US President Donald Trump threatened to impose tariffs of up to 500 percent on countries purchasing crude oil from Russia. India has been among the major countries purchasing cheap crude oil from Russia, which increased New Delhi’s concern after this statement. However, India has now significantly reduced its oil purchases from Moscow, and given the current situation, the threat of a 500 percent tariff on India appears to be almost over.
In fact, the biggest reason for this is believed to be the imminent completion of the long-stalled trade deal between India and the US.
Will an India-US trade deal happen soon?
Commerce Secretary Rajesh Agarwal said on Thursday that negotiations for a trade agreement between India and the US are ongoing. He also clarified that despite high tariffs, India’s exports to the US are experiencing positive growth.
Addressing the press, Agarwal said that both sides are negotiating a trade agreement and both believe that some form of compromise is possible. He said that in December last year, an important meeting was also held through digital medium between Commerce and Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer.
What issues have held up the deal?
Negotiations on a trade agreement between India and the United States have been ongoing for a long time, but they have yet to reach a concrete conclusion. The main reason for this is that India is reluctant to open its agriculture and dairy sectors to foreign competition. Currently, the United States imposes a total tariff of 50 percent on India.
This includes a 25 percent base tariff, and an additional 25 percent tariff has been imposed due to the purchase of cheaper crude oil from Russia. Furthermore, the United States has announced an additional 25 percent tariff on countries trading with Iran, which further increased India’s concerns.
Statement Raises New Hope
However, the Commerce Secretary’s latest statement clearly indicates that the ice between the two countries may be thawing. If a trade deal is reached, not only will the threat of additional tariffs on India be averted, but the economic relationship between the two countries could also gain new strength.
Experts believe that in the current global situation, both India and America do not want to lose each other as strategic and economic partners, hence sealing the trade deal is now only a matter of time.
Read More: Nobel Prize: Trump was overjoyed after receiving the Nobel Prize, saying a big thing for Machado.
Add informalnewz.com as a Preferred Source
DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at informalnewz@gmail.com
