US President Donald Trump speaks with the press as he meets with Indian Prime Minister Narendra Modi within the Oval Workplace of the White Home in Washington, DC, on Feb. 13, 2025.
Jim Watson | AFP | Getty Photos
In an indication of easing strain on India, U.S. President Donald Trump mentioned that commerce talks with New Delhi had been going effectively, and he might go to the nation subsequent yr.
Trump who was talking to reporters on the White Home on Thursday mentioned India “has largely stopped shopping for oil from Russia,” and if Prime Minister Narendra Modi prolonged him an invitation, he would go to the nation in 2026.
Evoking recollections of his final go to to India, Trump known as Modi “his good friend” and a “nice man.”
In the previous few months, India and U.S. relations have been beneath stress, with specialists warning of lacking chemistry between the 2 leaders, resulting in a disconnect between India-US ties.
Steep tariffs, $100,000 price for H1B visas, and Trump’s repeated claims of getting brokered a ceasefire between India and Pakistan and India’s purchases of Russian crude are amongst points which have led to a deterioration of ties between New Delhi and Washington in latest months, in keeping with specialists.
India at present faces 50% tariffs on it exports, increased than the 47% duties on China.
“Negotiations between New Delhi and Washington D.C. are ongoing and either side seem optimistic about commerce deal being reached by the top of the yr, presumably even within the subsequent few weeks,” mentioned Alexandra Hermann, head of Southeast Asia Analysis of Oxford Economics.
The tariff price on Indian items may very well be reduce to twenty% from 50% at present, placing India in comparable degree to its Asian friends akin to Vietnam, Thailand, or the Philippines, she mentioned.
Hermann added that the baseline tariff on India “could not fall to Japan and South Korea’s degree of 15%” attributable to sticking factors round purchases of Russian oil, agricultural imports, and restricted scope to decide to sizable investments within the U.S.
Final month, the U.S. imposed sanctioned on Russian oil majors Rosneft and Lukoil, which is able to come into power from Nov 21. In consequence Indian and Chinese language refiners have began to chop down imports of Russian oil.
In keeping with a Reuters report on Thursday, Russian oil is buying and selling at its steepest reductions to Brent in a yr in Asia, as main Indian and Chinese language refiners cut back purchases.
India’s Petroleum and Pure Gasoline ministry didn’t instantly reply to CNBC’s question on the nation reducing Russian oil imports.
“Over the long run, utterly phasing out Russian oil is not reasonable for India,” mentioned Prateek Pandey head of APAC oil and fuel analysis at Rystad Power, including that as Russian crude turns into accessible at a sharper low cost “New Delhi’s strategy of “economics first” can be examined greater than ever.
