By Admin 
The India-America trade deal that was stuck for several months has finally been agreed upon. US President Donald Trump suddenly announced that the tariff on Indian goods is being reduced from 25% to 18%. This decision was also shocking because before this the talks were inconclusive and America was continuously putting pressure on India. The question is, why did Trump suddenly bow down? What was the reason behind this?
The deal was stuck for months, the deal was not finalized even after 50% tariff
Talks on trade deal between India and America were going on for a long time, but no result was being achieved. To create pressure, America had even imposed 50% tariff on Indian goods. The condition of Trump administration was clear – if India wants a trade deal then it will have to stop buying crude oil from Russia.
However, Trump has now claimed that India has agreed to stop buying oil from Russia. At the same time, Prime Minister Narendra Modi welcomed the decision to reduce the tariff, but did not say anything about buying oil from Russia.
Game changed by India-EU trade deal?
According to a Newsweek report, the big trade deal between India and the European Union (EU) became an important reason behind Trump’s decision. Recently, negotiations on a Free Trade Agreement (FTA) were completed between India and the EU, which both sides described as the ‘biggest trade deal ever’.
With this deal, India’s power in negotiations increased and America started fearing that it might be left behind. A few days ago, Prime Minister Modi himself had described the India-EU deal as a big step for development, investment and strategic partnership.
Also read: Akhilesh Yadav’s big attack on India US Trade Deal, said- ‘BJP was the agent of foreigners earlier also, even today’
Why did America do this?
According to the report, the sequence of events was deliberately kept like this. Just before the announcement of the trade deal, the new US Ambassador to India Sergio Gore wrote on social media – ‘President Trump has spoken to Prime Minister Modi, stay tuned…’. The deal was announced shortly after this. It became clear that this decision was taken directly at the highest level.
Russia’s oil, America’s concern
For America, this is not just a matter of trade, but also of politics and energy policy. The White House wants to reduce Russia’s oil earnings so as to increase pressure on the Ukraine war. US Finance Minister Scott Besant had recently said that India’s oil imports from Russia have ‘almost ended’ and this paves the way for the removal of tariffs.
Claim to buy oil from Venezuela and America
Trump has also said that India will buy more oil from America and can also buy oil from Venezuela in future. Its purpose is that if the situation regarding Russia or Iran worsens, oil prices should not increase suddenly. The report also says that the increasing tension regarding Iran is a matter of concern for America because any conflict in the Middle East has a direct impact on the oil market around the world.
Also read: India US Trade Deal: 500 billion dollar deal, condition of not buying oil from Russia, every important thing related to India-US trade deal
What is the benefit to both the leaders?
Politically this deal is beneficial for both. Trump can show that he used tariffs as a weapon to put pressure on Russia. Modi got relief for Indian exports in the form of lower tariffs. Apart from this, America wants India to become a major manufacturing and defense partner outside China, while India wants to see the direct benefits of closer relations with America.