White House Press Secretary Karoline Leavitt claimed on Tuesday that New Delhi has agreed to “stop purchasing Russian oil” and to buy more American oil as part of the trade deal between India and the United States, Fox News reported.
Leavitt added that Prime Minister Narendra Modi committed to $500 billion worth of purchases of US energy, transportation and agricultural products.
India has not commented on the claims so far. The US has been repeatedly alleging that India’s purchases of Russian oil have helped fuel the war in Ukraine, while New Delhi has maintained that its oil purchases are aimed at ensuring its own energy security.
India also agreed to potentially buy more oil from Venezuela, the White House press secretary told Fox News. “As you know, the president [Donald Trump] and his national security team are now dictating the commerce of Venezuela and those oil sales and so, this directly benefits the American people as well,” she said.
Last week, the US reportedly told India that it could soon resume purchasing Venezuelan oil to help replace oil imports from Russia.
As per the deal, which was announced on Monday, the US would cut tariffs imposed on India to 18% with immediate effect. India will reduce its tariffs and non-tariff barriers against the US to zero, Trump said.
US Trade Representative Jamieson Greer on Tuesday told CNBC that Washington will “continue to maintain some level of tariffs against India – 18% – because we have this giant trade deficit with them”. However, India has agreed to reduce tariffs on a variety of agricultural products, manufactured goods, chemicals and medical devices, Greer said.
Indian goods had been facing a combined US tariff rate of 50%, including a punitive levy of 25% imposed in August for buying Russian oil. After the deal was announced, Modi said on social media that he was “delighted” that India-made products will now face reduced tariffs.
On Tuesday, Union Commerce and Industry Minister Piyush Goyal said that the interests of Indian farmers were safeguarded and their protection was key during the course of negotiations for the deal, The Indian Express reported.
“The Prime Minister is constantly concerned about our farmers, those associated with animal husbandry, and the dairy sector,” Goyal was quoted as saying by the newspaper. “He has never allowed their interests to be compromised… In this US trade deal, the sensitive sectors of agriculture and dairy have been protected.”
Opposition parties in India have expressed concerns that the interests of farmers have been jeopardised in the deal. Congress MP Jairam Ramesh said it was clear that Modi had “completely surrendered” by agreeing to the deal, according to The Indian Express.
“He has most definitely appeased President Trump,” Ramesh said. “India stands diminished by this unfortunate sequence of events.”
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