US Could Cut India Tariffs from 50% to 15%
October 26, 25
(IDEX Online) - The US is reportedly considering a reduction in its tariffs on exports from India, if it agrees to limit its oil imports from Russia.
Both sides are edging closer to a trade agreement that would cut the current 50 per cent tariff to 15 per cent or 16 per cent, according to unconfirmed reports in the Indian business and financial daily newspaper Mint.
Such an agreement would focus primarily on energy and agriculture, but would also benefit its diamond sector, which has been all but paralyzed since the imposition of a 25 per cent reciprocal tariff, plus an additional 25 per cent as a punishment for buying Russian oil.
US President Donald Trump said last week that Indian prime minister Narendra Modi had assured him during a phone call that he "was not going to buy much oil from Russia".
According to the Mint report, a bilateral trade agreement between India and the US could be signed at the Association of Southeast Asian Nations (ASEAN) summit that opens today (26 October) in Malaysia.
It would depend on India reducing its oil purchases from Russia and allowing in more non-genetically (GMO) modified American corn and soymeal.