Interesting: New Deal Between India And USA, But…
However, there is a big catch here, and this involves the complications in the trade agreement between the two countries.;
United States president to Donald Trump has been taking pretty significant measures in connection with the trade agreement agreements with India. In this context, something significant happened today as a new trade agreement was announced between the two countries.
However, there is a big catch here, and this involves the complications in the trade agreement between the two countries.
A new development under the monitoring and enforcement framework of the proposed trade arrangement suggests that the United States may closely track India’s energy purchases, particularly crude oil imports from Russia.
According to the provision being discussed, if India continues to procure significant volumes of Russian oil, the US could respond with punitive economic measures, including the possibility of imposing a 25 percent tariff on certain Indian exports.
The move is being viewed as part of Washington’s broader strategy to discourage countries from maintaining strong energy ties with Moscow amid ongoing geopolitical tensions. For India, however, Russian oil has remained an attractive option due to discounted prices, helping the country manage inflation and ensure energy security for its growing economy.
Policy observers believe such monitoring could complicate India’s balancing act between protecting national interests and maintaining stable trade relations with the United States.
While India has consistently defended its right to source energy based on economic needs, any tariff action from the US could impact key export sectors and strain bilateral ties.
At the same time, analysts point out that negotiations are still evolving, and no final decision has been formally implemented. The situation highlights the increasingly complex intersection of trade, geopolitics, and energy security shaping global economic partnerships.