India in limbo over Russian oil imports as talks with US on trade deal continues
Washington has previously tied lower tariffs on Indian exports to the US to New Delhi’s commitment to curb its purchases of Russian oil
The cumulative US tariff on India dropped to 18 per cent from 25 per cent after the two countries announced an interim trade agreement earlier this month. The levy was 50 per cent previously at the height of the standoff between Delhi and Washington over the Russian oil trade.
Following the court ruling, Trump imposed a blanket 10 per cent tariff on all US imports – a temporary unilateral measure applicable for up to 150 days without requiring congressional approval. He has threatened to raise the tariff further to 15 per cent.
Despite the court ruling against Trump’s tariffs, there is still no clarity on India’s Russian oil purchases, according to analysts.
“India should drive a harder bargain, as the US tariffs have been rendered illegal. This will surely decrease the pressure. Of course, it is also important to lower the political risks,” said Biswajit Dhar, an economics professor at New Delhi’s Council for Social Development.