Israel Finance Ministry’s Chief Economist Sees US-India Tariff Issue as Temporary
Shmuel Abramzon, Chief Economist at Israel’s Ministry of Finance, expressed confidence that the recent 50% US tariffs on Indian imports are likely temporary. He highlighted India’s negotiation skills and emphasized the longstanding partnership between India and the US, predicting that both nations will reach an agreement to reduce tariffs.
The tariffs were imposed in two parts: an initial 25% levy followed by an additional 25% secondary sanction in response to India’s continued purchase of Russian crude oil. This brings the total to 50% on certain Indian goods.
US Perspective:
- President Donald Trump stated that “Phase-2” and “Phase-3” tariffs against countries maintaining trade with Russia, including India, have not yet been implemented.
- Trump underscored India as the largest buyer of Russian oil after China and reiterated that further penalties could occur if imports continue.
- Trump described the tariffs as necessary for rebalancing trade, citing that India, China, and Brazil have historically benefited from the US market while American companies face difficulties entering theirs.
- Trump also mentioned that India offered a “no-tariff” deal in response to the US raising duties, but noted timing was an issue.
Context:
The US tariffs aim to pressure countries purchasing Russian oil and rebalance perceived trade inequities, while global markets navigate uncertainty around these measures. (ANI)
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