Trump scraps 25% tariffs on Indian goods after India vows to stop buying Russian oil
US President Donald Trump on Friday decided to scrap an additional 25% tariffs he had previously imposed on Indian goods because New Delhi continues to buy Russian oil, as the two sides begin implementing a trade deal reached 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 US energy products and committed to a framework with the United States to expand defense cooperation over the next 10 years,” according to the executive order; The additional 25% US tariff will be lifted on Saturday.
The decision comes days after Trump announced a trade deal with India that would cut tariffs 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 tariffs on Indian products to 18%, up from 25%.
A joint statement issued by the White House added that India intends to buy $500 billion worth of energy products, aircraft, precious metals, technical products and coal briquettes from the United States over the next five years.
The deal eases months of tensions between Washington and New Delhi over the purchase of Russian oil, which Trump sees as funding a dispute he is seeking to end.
The agreement also restores close ties between Trump and Modi, a right-wing populist leader whom the US president once described as “one of my best friends”.
