Trump–Modi Talks :- The United States has announced that it will remove the 25 percent additional tariff imposed on India related to Russian oil. This decision comes after India agreed to stop purchasing crude oil from Russia. The White House officially confirmed this on Monday.
Trade Agreement Follows Trump-Modi Talks
A White House official told news agency IANS that a significant trade agreement was reached between the two countries following a phone conversation between President Donald Trump and Prime Minister Narendra Modi. Under this agreement, the 25 percent tariff on India related to Russian oil will now be removed.
US Tariff Reduced from 25% to 18%
In a detailed post on his social media platform Truth Social, Donald Trump stated that under this agreement, the US reciprocal tariff on Indian goods has been reduced from 25 percent to 18 percent. Trump described it as a major shift in India-US bilateral trade relations, linked to energy cooperation and broader geopolitical goals.
Russian-Ukrainian War and Energy Issues Also Discussed
According to President Trump, the two leaders also discussed issues beyond trade, including ending the Russia-Ukraine war. Trump claimed that Prime Minister Modi agreed to stop buying oil from Russia and increase oil imports from the US and possibly Venezuela.
PM Modi’s Statement: ‘Made in India’ to Benefit
Prime Minister Narendra Modi, reacting on the social media platform X (formerly Twitter), said he was pleased that the tariff on ‘Made in India’ products has now been reduced to 18 percent. He said that when the world’s two largest economies and biggest democracies work together, it benefits the people of both countries and opens up new opportunities for cooperation.
Additional Tariff Linked to Russian Oil
A senior US administration official clarified that the 25 percent additional tariff imposed on India was directly linked to its purchases of oil from Russia. This tariff will now be removed following India’s commitment to stop such imports.
US move linked to energy and geopolitics
This decision reflects the US strategy of using economic policies to limit Russia’s oil revenues. The US believes that revenue from Russian oil finances Russia’s military operations, particularly in the context of the war in Ukraine.
India became a major buyer of Russian oil
After the start of the war in Ukraine, India significantly increased its purchases of discounted Russian crude oil to meet its domestic energy needs. Indian officials have consistently stated that energy decisions are made based on national interest and market conditions.
India’s balanced foreign policy
While maintaining dialogue with both Russia and Western countries, India has advocated for an end to the Russia-Ukraine conflict through dialogue and diplomacy.
India-US trade and energy cooperation strengthens
The White House announcement comes at a time when India and the US are working to further strengthen trade and investment ties. In recent years, the US has significantly increased its exports of oil and gas to India and established itself as a reliable long-term energy supplier.
Indian industry and global markets watching closely
This tariff decision will be closely watched by Indian policymakers, refinery companies, exporters, and global energy markets, as this move could further accelerate the global trend of moving away from Russian crude oil.
External Affairs Minister S. Jaishankar’s US visit
Meanwhile, the Indian Ministry of External Affairs has announced that External Affairs Minister S. Jaishankar will visit Washington this week. He will participate in the Critical Minerals Ministerial hosted by US Secretary of State Antony Blinken. The meeting will discuss supply chain resilience, clean energy transition, and strategic cooperation.
Conclusion
Overall, the US decision to remove the 25 percent tariff is considered a significant turning point in India-US relations. This step will not only strengthen trade and energy cooperation but will also impact the global geopolitical balance. Trade and energy security will continue to play a crucial role in the relationship between the two countries in the coming years.
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