“US to cancel 25% tariff for India after Trump’s statement over Russian oil purchases – ReutersThe US is canceling a 25% punitive tariff on imports from India. This happened after an agreement under which India is reducing its purchases of Russian oil.
”, — write: unn.ua
DetailsThis came after US President Donald Trump announced on Monday a trade deal with India that lowers US tariffs on Indian goods from 50% to 18% in exchange for India ending purchases of Russian oil and lowering trade barriers.
Trump said India would stop buying Russian oil and increase purchases from the US02.02.26, 19:43 • 3078 views
Trump announced the deal on social media after a conversation with Indian Prime Minister Narendra Modi, noting that India would now buy oil from the US and possibly Venezuela.
Shares of major Indian companies listed on the US stock exchange rose after the news. Shares of IT consulting firm Infosys closed up 4.3%, consulting firm Wipro up 6.8%, HDFC Bank up 4.4%, and the iShares MSCI India exchange-traded fund up 3%.
Trump’s statement boosted positive sentiment towards semiconductor and artificial intelligence manufacturers, pushing major indices into positive territory during the day.
Trump’s announcement contained few details, including the effective date of the lower tariffs, the deadline for India to stop buying Russian oil, the reduction of trade barriers, and what American goods India had committed to buying.
AdditionLast August, Trump doubled tariffs on imports from India to 50% to force New Delhi to stop buying Russian oil, and earlier this month said the rate could rise again if India did not curb its purchases.
Buying Venezuelan oil will help replace some of the Russian oil bought by India, the world’s third-largest oil importer, the publication writes.
India is heavily dependent on oil imports, covering about 90% of its needs, and importing cheaper Russian oil has helped lower its import costs after Russia’s invasion of Ukraine in 2022 and Western countries imposed sanctions on its energy exports.
Recently, India has begun to slow down its purchases from Russia. In January, they amounted to about 1.2 million barrels per day, and are projected to decrease to approximately 1 million barrels per day in February and 800,000 barrels per day in March, according to Reuters.