The United States and India have reached an interim agreement aimed at resolving ongoing trade tensions related to India’s procurement of Russian oil. As part of the deal, a previously imposed 25% tariff, introduced as a punitive measure, has been suspended.
This development marks a step toward improving bilateral trade relations between the two countries, which had been strained for several months. Both sides have expressed commitment to further negotiations to solidify a comprehensive trade agreement.
**Why this matters**
The agreement helps de-escalate economic friction between two major global economies, potentially stabilizing trade flows and fostering cooperation. Additionally, it addresses concerns arising from India’s continued purchases of Russian oil amid international sanctions, balancing geopolitical and economic interests.
Source: NewsData