[AP Photo]
Indian lawmakers from the ruling coalition praised Prime Minister Narendra Modi yesterday [Macau time] for striking a deal with the U.S. that seeks to reduce tariffs on Indian goods, while the opposition raised questions on the impact on sensitive sectors such as agriculture.
President Donald Trump on Monday announced he plans to reduce import tariff on India, six months after imposing steep taxes to punish New Delhi for its unabated purchase of Russian oil that he claimed helped fuel Moscow’s war machine against Ukraine.
In a social media post, Trump said Modi has agreed to stop purchasing Russian oil, though the Indian government remained tight-lipped if this was the case.
US promises to reduce tariffs on India
Trump said he would bring down the tariffs from 25% to 18% in return for India agreeing to stop Russian crude purchases. New Delhi will also start to reduce its import taxes on U.S. goods to zero and buy $500 billion worth of American products, Trump said.
“This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!” Trump wrote in a Truth Social post Monday.
Modi posted on X that he was “delighted” by the announced tariff reduction and that Trump’s “leadership is vital for global peace, stability, and prosperity.” There has been no word beyond this from the Indian side on the scale and scope of the trade deal.
Penal tariff for Russian oil purchases to go
Trump didn’t categorically mention if he will remove the additional 25% tariff on India for purchase of Russian crude, but a spokesman at the U.S. Embassy in New Delhi late Monday confirmed that “the final tariff will be 18%.”
This effectively means that the penal tariff will be dropped, in a respite for Indian exporters who had been facing the heat due to a combined steep tariff as high as 50%. MDT/AP
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