ALWAGHT- In a move following a preliminary trade agreement, President Donald Trump has signed an executive order lifting a 25% tariff on Indian goods. The tariff had been imposed due to India's purchases of Russian oil.
The United States and India have finalized a preliminary trade deal, centered on the removal of a 25% tariff the US had imposed on Indian goods due to India's purchases of Russian oil. This tariff will be lifted effective immediately, as part of an agreement where India commits to halting direct and indirect imports of Russian oil. In return, India has pledged to purchase $500 billion in US energy products, aircraft, and other goods over the next five years.
The agreement involves significant mutual tariff reductions. India will eliminate duties on all US industrial goods and lower tariffs on many agricultural products. The US will reduce its overall tariffs on Indian imports by removing the Russia-related duty and lowering other "reciprocal" tariffs, bringing the rate down from 50% to 18%. The deal also includes the removal of tariffs on specific aircraft and parts, and establishes new quotas for auto parts.
Both nations have stated that negotiations will continue toward a broader bilateral trade agreement to expand market access and strengthen supply chains. US officials framed the deal as opening significant opportunities for American businesses. The agreement follows recent US pressure, including a threat to double tariffs on India and a push for it to replace Iranian oil with Venezuelan crude.
