Donald Trump President of the United States It agreed to reduce the import duty on goods from India to 18% from the previous high of 50%, eliminating the 25% punitive duty and the 25% countervailing duty (reciprocal tariff) in exchange for the reduction. India must stop buying oil from Russia. and will turn to buying oil from the United States and may include Venezuela instead.
India also agreed to reduce tariffs and other trade barriers. to US products to zero. Indian Prime Minister Narendra Modi has also pledged to implement the ‘BUY AMERICAN’ policy at a much higher level. By agreeing to purchase energy products Including coal, technology and agricultural products from the United States. Total value of more than 500 billion US dollars. This agreement comes after India recently signed a trade deal with the European Union (EU).
There is currently no official announcement from the White House regarding the effective date. Deadline to stop buying Russian oil Including a list of specific items that India will need to purchase more of.
Impact on the market and reaction
The Indian stock market and stocks of US-listed Indian companies such as Infosys, Wipro, HDFC Bank rose immediately after this news. This is because it reduces pressure on the rupee and the export sector.
The US Chamber of Commerce views it as a ‘first step’ towards a comprehensive trade agreement. While the Indian Trade Minister viewed that It will help unlock opportunities. For entrepreneurs and workers in the ‘Made in India’ project
A coalition of more than 800 small businesses, called ‘We Pay the Tariffs’, urged Americans not to celebrate the deal yet. Stating that this is Tax increases for American businesses up to 600% by 2024.
The group provided additional information. During that time Tariff rates in the United States The charge for importing goods from India is only around 2-3%, but currently it has shot up to 18% and is likely to move even higher. If India does not completely cut off imports of Russian oil.
The Trump administration is now rushing to strike trade deals with key trading partners. Before the United States Supreme Court There will be a decision on the president’s authority to raise retaliatory tariffs.
India, which is 90% dependent on oil imports, has ‘started slowing down’ its oil purchases from Russia in the recent past. It is expected to drop to 800,000 barrels per day in March. In addition, the United States The President of Venezuela was detained. It has been predicted that India may buy oil from Venezuela to replace Russian oil.
Image file: Mark Wilson / Getty Images
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