Korean media: Trump imposes tariffs on South Korea while reducing tariffs on India from 50% to 18%

On the 2nd local time, US President Trump stated that in light of India's commitment to stop purchasing Russian crude oil, the US has decided to reduce the tariff on India from the current 25% to 18%.

Trump explained the reason for the tax cut through social media on the same day. He said that at the request of Indian Prime Minister Modi, the US and India have decided to immediately sign a trade agreement, which will take effect immediately from the date of signing.

Previously, in addition to imposing a 25% reciprocal tariff on India, the US also imposed an additional 25% sanctioning tariff due to its import of Russian crude oil. A White House official confirmed that the US will cancel the reciprocal tariff and simultaneously revoke the additional tariff on Russian crude oil. This move is expected to cause Indian tariffs to plummet from a historical high of 50% to 18% in a "cliff-like" manner.

Before officially announcing the tax reduction, Trump spoke with Modi on the same morning. The two leaders exchanged views on core issues such as bilateral trade and the Russia-Ukraine war.

Analysts believe that Modi was able to obtain the US' tariff concessions by committing to stop buying Russian crude oil and instead expand the purchase of American crude oil and Venezuela crude oil controlled by the US. In this regard, Trump explained, "PM Modi has agreed to stop buying Russian crude oil and significantly increase (crude oil) purchases from the US and potential Venezuelan channels."

Trump further stated, "India will strive to reduce tariffs and non-tariff barriers against the US to zero," "In addition to purchasing more than USD 500 billion worth of US energy, technology, agricultural products, coal, and other products, PM Modi has also committed to implementing a higher-level 'Buy American' program." He concluded by saying, "The extraordinary relationship between the US and India will become increasingly solid in the future."

Looking back, Trump had previously imposed an exceptionally high level of sanctioning tariffs on India, citing its purchase of Russian energy, which led to a sharp deterioration of US-India relations. Especially when India showed a tendency to align with China under US pressure, the US domestic public opinion expressed deep concerns, with critics arguing that for the purpose of countering China, US-India cooperation is indispensable, but this relationship is facing the risk of being weakened due to tariff disputes.

Modi publicly shared the details of his call with Trump via social media X (formerly Twitter), stating, "I am deeply pleased that the tariff on Indian products has been reduced to 18%. I sincerely thank President Trump for issuing this excellent decision on behalf of 1.4 billion Indians."

Modi further highly praised, "President Trump's leadership is essential for world peace, stability, and prosperity," "India will fully support his diplomatic peace efforts and look forward to working closely with President Trump to elevate bilateral relations to an unprecedented new height." However, Modi did not mention specific exchange conditions such as stopping the purchase of Russian crude oil or reducing tariffs on US products in his statement.

This US tariff reduction for India contrasts sharply with Trump's sudden announcement on the 28th of last month, when he unilaterally notified South Korea that it would raise the tariff from 15% to 25% due to the delay in handling the "Special Act on Investment in the US" by the South Korean National Assembly.

Analysts believe that South Korea is a formal ally of the US based on the Mutual Defense Treaty, while India is a partner participating in the containment of China through the Quadrilateral Security Dialogue (Quad, a security cooperation organization of the US, Japan, Australia, and India). Analysts believe that Trump's vastly different trade measures this time once again confirm that in his second year in office, he still adheres to his consistent negotiation principle of using trade pressure as a bargaining chip regardless of alliances.

Source: Central Daily News

Original article: toutiao.com/article/1856163634726987/

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