Trade deal finalisation close, will bring down tariff on India: Trump
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New Delhi: US President Donald Trump on Tuesday said that Washington and New Delhi are heading towards signing a trade deal, adding that the US will cut down tariffs on India.
Trump further claimed that India has substantially reduced buying Russian oil.
Efforts were underway to finalise trade deal when both countries hit a roadblock after President Trump levied on India the highest tariffs of 50 per cent on any country globally.
‘Right now, the tariffs are very high on India because of the Russian oil, and they have stopped doing the Russian oil… It’s being reduced very substantially. We will bring the tariffs down at some point,’ Trump said.
However, setting a conciliatory tone, Trump said that he directed Sergio Gor, US Ambassador to India, to strengthen relationship between both countries, particularly pointing to the strategic partnership with New Delhi.
‘India is home to one of the world’s oldest civilisations, the largest country in the world, actually, and it’s got over 1.5 billion people. We have a fantastic relationship with Prime Minister Modi, and Sergio is only enhancing that because he’s already become friendly with the Prime Minister. It’s a very important relationship, but it’s also the fastest-growing middle class, and an important economic and strategic security partner in the Indo-Pacific region,’ Trump reportedly said.
It is reported citing trade experts that India should seek a 15 per cent tariff concession in line with what the UK and Japan have achieved.
Getting 15 percent tariff rate is ideal as the US kept 20 per cent tariff on Vietnam and 19 per cent on ASEAN countries including Malaysia and Cambodia.
Pointing at likelihood of increasing energy imports from the US, Commerce Minister Piyush Goyal had said in September that India’s energy security goals will have US a ‘very high element’ of US involvement in the coming years.