India agrees to trade deal with the US, reducing tariffs and potentially ending Russian oil imports.
Rack ’em up before the Supreme Court cuts the legs out from under Donald Trump’s tariff leverage. One has to wonder whether the justices may be waiting for a few more trade agreements to come in line before publishing their ruling on Trump’s authority under the IEEPA. Or, perhaps, delaying it just in case Trump can use it to end the war in Ukraine.
Trump offered that as a potential outcome from a new trade agreement reached with India today. The agreement will limit reciprocal tariffs to 18% and commits India to invest $500 billion in the US. Most importantly, Trump claims that India has agreed to cut off Russian oil imports while the war in Ukraine continues:
It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!
PRESIDENT DONALD J. TRUMP
If India has indeed halted the importation of Russian oil, that would deal a body blow to Vladimir Putin’s war effort. Both India and China had reportedly begun to pull back from Russian energy when Trump announced his 25% excess tariffs on countries that traded with Russian customers, although that didn’t necessarily stop that trade.
