Recently, American tone appeared to have changed regarding India. That too from the Trump Administration. US Trade Representative Jamieson Greer recently said on India’s purchase of Russian oil that India’s purchase of Russian oil is not the foundation of the Indian economy and the country is starting to diversify its energy purchases. He also said that India will take its own decisions and America is not dictating to any country with whom they can have relations. After a long time, such positive things have come out for India from the American Administration. Which is indicating that the trade talk between the two countries is progressing in a positive manner. There are also indications that if India further reduces the import of Russian oil, then the extra tariff of 25 percent can also be abolished in the coming days. If this happens, then India’s American exports may get even more boost in the coming days. Let us also tell you what the American Trade Representative has said…
Russian oil is not the base of Indian economy
Jamieson Greer said during a talk organized by the Economic Club of New York last week that India has not always been buying so much oil from Russia. They have always had strong relations with Russia but in the last two or three years they have started buying Russian oil at a discount not only for consumption but also for refining and resale. He said that it is not that it is a fundamental part of the Indian economy. We believe they can and should do so. To be honest, I can see them starting to diversify right now. I think they are understanding it. Greer said that obviously they (India) are a sovereign country. They will take their own decisions. A senior official of the administration of US President Donald Trump said that we are not giving instructions to other countries with whom they can have relations and with whom they cannot. We are not trying to do that.
What was said on 50 percent tariff…
The US President has imposed 50 percent duty on India, which includes 25 percent duty on the purchase of Russian oil. Trump and his administration officials say India’s purchase of Russian oil is fueling Russia’s war against Ukraine. On the question asked about the impact of 50 percent duty on India, Greer said that this duty has been in effect on India for a few weeks. He said that India is a country which has a trade surplus of 40 billion US dollars with us. That’s why they already have a… great deal with America. They sell us more than we sell them.
So that pressure can be put on Putin
Greer also said that America has been talking with Indians on trade matters since the first day of the Trump administration. He said that we are trying to negotiate an agreement. The additional 25 percent duty is due to the huge increase in the purchase of Russian oil by India. Greer stressed that Trump is focused on ending the Russia-Ukraine war… We are trying to make sure that there is as much pressure as possible on (Russian President) Vladimir Putin… We have also talked to our European allies, some of whom are still buying Russian oil today, which is a strange thing.
Talk not only to India but also to China
Therefore, we are not only talking to Indians about this, but we have also talked to China about this. We just need to end this war. If the war ends and there is some kind of stability in the situation, then you can have a separate conversation about Russian oil. India says its energy purchases are driven by national interest and market dynamics. India has started purchasing Russian oil, which is sold at a discount, after Western countries imposed sanctions on Russia and cut off its supplies following the invasion of Ukraine in February 2022.
Will there be talks on tariffs and trade?
The changed tone towards America is indicating a lot. The tariff imposed on India is not only troubling India. Rather, it is also putting the American people in trouble. There is a reason for that too. Inflation is increasing in America due to high tariffs on Indian goods. Because of which the public is very upset. In such a situation, the Fed may step back from cutting the reserve policy rate in the coming days. Whose effect will also be visible on the country’s economy. In such a situation, there is a lot of pressure on the American government. On the other hand, if India is reducing Russian supply, then America wants it to increase the supply of American oil, so that balance is maintained in the market.