The president of States Joined (EU), Donald Trumptook measures to lift duty of the 25% that had been imposed on products from India for purchases from that country oil Russian.
It is a key step for the implementation of a new trade agreement announced this week between the two countries.
“India committed to stop, directly and indirectly, importing oil from the Russian Federation,” according to the executive order Trump signed.
The additional 25% fee will be removed beginning at 12:01 a.m. Eastern Time on Saturday.
New Delhi also said it will buy American energy products, “and has recently committed to a framework with the United States to expand defense cooperation over the next 10 years.”
Commercial relationship between EU and India
India intends to buy 500 billion dollars in energy products from States Joinedaircraft and parts, precious metals, technological products and coking (or metallurgical) coal over the next five years.
The pact also contemplates that Washington reduce so-called “reciprocal” tariffs on Indian goods to 18%, from the 25% level.
The executive order comes days after Trump announced a trade deal with India, saying Prime Minister Narendra Modi had promised to stop buying Russian oil because of the war in Ukraine.
The agreement eases months of tensions over India’s acquisition of crude oil, which Washington says is financing a conflict that the White House is trying to end.
The change marks a significant reduction in US tariffs on Indian goods from a rate of 50% late last year.
It also restores close ties between Trump and Modi, whom the US president has described as “one of my great friends.”
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