FX.co ★ US to Lower Tariffs on India to 18%

The United States government has decided to eliminate the additional 25% tariff that was placed on Indian imports due to India's purchases of Russian oil. Additionally, it has reduced the specific tariff for India from 25% to 18%, a White House official stated on Monday. "We are also removing the 25% tariff in light of India’s commitment to cease buying Russian oil," the official remarked, as reported by Reuters. This announcement was made by US President Donald Trump in a Truth Social post after a discussion with Indian Prime Minister Narendra Modi. However, he refrained from mentioning the 25% tariff that he initiated in August, which aimed to compel New Delhi to stop procuring Russian oil. Previously, on August 7, Trump had increased tariffs on Indian goods entering the US to 50%, citing the country's persistent acquisition of Russian oil as the cause. This decision was in line with Trump's July 31 statement, which introduced a 25% tariff on all Indian products with the caution that further sanctions would ensue if India continued its purchase of Russian oil.