The 'punishment' for friendship with Russia is over: America lifts Russian oil tariffs on India, a major decision by Trump
US President Trump has also lifted the 25% Russian oil tariff on Indian goods. This move comes as the two countries have reached agreement on a trade deal. The agreement includes reductions in reciprocal tariffs and a commitment by India to purchase $500 billion worth of US energy and other products over the next five years.
US President Donald Trump on Friday moved to remove an additional 25 percent tariff imposed on India's purchases of Russian oil. This step comes as part of implementing the trade deal announced this week. According to an executive order signed by Trump, India has committed to stopping direct or indirect imports of oil from the Russian Federation.
The order also said New Delhi has stated its intention to continue purchasing US energy products and "recently agreed on a framework with the United States to enhance defense cooperation over the next 10 years." The additional 25 percent US tariff will be removed at 12:01 a.m. Eastern Time on Saturday.
This executive order comes days after Trump announced a trade agreement to reduce tariffs on India. Trump had said that Prime Minister Narendra Modi had promised to stop buying Russian oil due to the Ukraine war.
Under this agreement, Washington will reduce the so-called "reciprocal" tariff on Indian products from 25 percent to 18 percent. The process of implementing this reduction is still pending.
Agreed upon
According to a separate joint statement issued by the White House on Friday, other terms of the agreement include the removal of tariffs on certain aircraft and parts.
The statement also said that India intends to purchase $500 billion worth of US energy products, aircraft and parts, precious metals, technology products, and coking coal over the next five years.
The agreement provides some relief to months of tensions over India's oil purchases. Washington says India's oil purchases fund the conflict it is trying to end.
Modi-Trump relations improve again
The agreement has re-established a close relationship between Trump and Modi. Modi, also a right-wing populist, has been described by the US leader as "one of his best friends."
Wendy Cutler, senior vice president at the Asia Society Policy Institute, said this week that the 18% tariff level gives Indian exporters a slight advantage in the US market compared to regional competitors, who have faced tariffs of around 19% to 20%.