US higher tariff threat on India seen dampening BTA prospects

US President Donald Trump has stated that India is purchasing less oil from Russia, but warned that Washington can quickly raise tariffs on India if all purchases are not halted. The threat of higher tariffs could make the proposed India-US bilateral trade agreement (BTA) harder to reach, officials said. At the same time, exporters fear that tariffs on top of the existing 50 per cent duties could eliminate trade. The threat of higher tariffs would make the proposed India-US BTA — which has already missed its Fall deadline — more difficult to clinch, said officials tracking the matter. The India-US deal can be signed only when the US removes Russian oil tariffs. If that continues or is raised and India signs the deal, then it won’t have any bargaining power, as per a report.

Please visit our youtube channel https://www.youtube.com/@ikargos2719 for fortnightly logistics news analysis and more!