Now India has reduced its oil purchase from Moscow to a great extent, and considering the current situation, the threat of imposing a 500 percent tariff on India seems almost over.
No more 500% tariffs! Major update on trade deal with the US
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 a major buyer of cheap crude oil from Russia, which raised concerns in New Delhi following 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 virtually eliminated.
In fact, the biggest reason for this is believed to be the early completion of the long-pending trade deal between India and America.
Will there be an India-US trade deal soon?
Commerce Secretary Rajesh Agarwal said on Thursday that talks on a trade deal between India and the United States are continuing. 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 some form of compromise is possible. He added that a key meeting took place last December via digital media between Commerce and Industry Minister Piyush Goyal and US Trade Representative Jamieson Greer.
On which issues was the deal stuck?
Negotiations on a trade agreement between India and the United States have been ongoing for a long time, but have yet to reach any concrete conclusions. This is primarily due to India's reluctance 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 imposed for purchasing cheaper crude oil from Russia. Furthermore, the US has announced an additional 25 percent tariff on countries trading with Iran, further increasing India's concerns.
The statement raised new hopes.
However, the Commerce Secretary's latest statement clearly indicates that the ice between the two countries may be thawing. A trade deal reached would not only avert the threat of additional tariffs on India but also strengthen the economic relationship between the two countries.
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.
