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The Global Trade Research Initiative (GTRI) flags unfair surcharge of 25 per cent as penalty imposed on Indian goods under the 'Russian oil' category.
It urged the United States to immediately withdraw the additional 25 per cent tariff, arguing that the measure has lost all justification following India's sharp reduction in crude purchases from Moscow. US President Donald Trump, too, acknowledged that India has "very substantially" stopped buying Russian oil. On November 11, Trump confirmed that the tariff had been applied solely because of India's earlier imports from Russia, and assured that "we're going to be bringing the tariffs down." GTRI said that with India having acted on US concerns, Washington must now move without delay to revoke the surcharge rather than link it to broader, time-consuming trade negotiations. According to the think tank, retaining the tariff at this stage amounts to penalising Indian exporters and unfairly targeting a partner that has significantly shifted towards American energy suppliers. Prolonging the measure, GTRI warned, could weaken goodwill and slow progress in the ongoing trade discussions. The think tank argued that a swift rollback would honour President Trump's commitment, reward India's rapid pivot to US crude and LPG, boost American energy shipments, and remove an irritant in bilateral ties. Withdrawal would also restore parity with other major economies, particularly with China, that continue buying larger volumes of Russian oil without facing comparable penalties. Trade data support India's position. Between April and September 2025, India's imports of US petroleum crude jumped 66.9 per cent to USD 5.7 billion, lifting total US petroleum and product exports to India by 36.3 per cent to USD 7.5 billion. In contrast, India's exports of petroleum products to the US declined 15 per cent to USD 2.3 billion, easing earlier concerns that Indian refiners were processing Russian crude for re-exports to American markets. India has also signalled deeper energy cooperation with the US Bharat Petroleum Corporation Ltd (BPCL) has contracted 10 million barrels of US Midland crude for delivery between November and March, while New Delhi has finalised its first structured deal to import about 2.2 million tonnes of US liquefied petroleum gas in 2026, roughly 10 per cent of the country's annual LPG requirement. GTRI noted that India is now among the few major economies significantly ramping up US oil and LPG purchases. With no remaining strategic, economic, or political rationale for the tariff, it said Washington should remove the surcharge immediately to demonstrate that US policy remains principled, fair, and responsive to partners who act on American concerns. (ANI)
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