US President Donald Trump signed an order on Friday withdrawing the measures imposed last year. additional 25 percent tariffs on goods from India in exchange for not importing Russian crude oil. This is the result of the trade agreement concluded and the Indian authorities' promise to cut off purchases from Russia.
“India has committed to stopping direct or indirect imports of crude oil from the Russian Federation. It has stated that it will purchase American energy products from the United States and recently committed to concluding a framework agreement with the United States to expand defense cooperation over the next 10 years,” Trump wrote in the justification for the decision included in the decree.
The signed document withdraws the additional 25 percent tariffs on goods from India that Trump imposed in August last year. According to Bloomberg, since then India has significantly reduced imports of raw materials from Russia. On Saturday, the US president claimed that agreed to import oil from Venezuela to replace supplies from Iran.
India will buy oil and gas from the US
The tariff reduction is also the result of the trade agreement framework concluded by both countries, which the US President announced on Monday.
Under the new conditions, customs duties on goods from India will decrease from 50 to 18 percent, and India is to abolish its own customs duties in a number of categories to zero. The authorities also committed to purchasing USD 500 billion. US products, including oil and gas.
India has so far been the only one of the world's largest economies that has not negotiated a trade agreement with the Trump administration. The announcement comes after years of negotiations on India's trade deal with the EU ended last week.
