Last year, India’s oil imports from Russia were sparking a trade war. However, India recently reached an agreement with the United States to ensure that tensions related to customs tariffs will not escalate further, at least on one front. This development is a positive step for cryptocurrencies.
Breaking News on Customs Tariffs
The U.S. customs tariffs became a significant concern for cryptocurrency investors last year. Believing that the war between Russia and Ukraine would end if Russia could not sell oil, Trump issued stern threats regarding this matter. Trump hinted at imposing more than 100% taxes on China and India “just for buying oil from Russia.” In response, Putin made mocking statements and discussed enhancing cooperation with India and China through joint declarations, doubting that these hefty tariffs would put pressure on its partners.
Today, after discussions with Modi, Trump finally announced that an agreement had been reached with India. Key points of the agreement and Trump’s significant remarks are as follows:
- India agreed to stop buying oil from Russia and purchase much more from the U.S. and potentially Venezuela.
- A trade agreement will be established, reducing the mutual U.S. tariffs from 25% to 18%.
- India will also lower its tariffs and non-tariff barriers to zero for the U.S.
- India will purchase over 500 billion dollars worth of U.S. energy, technology, agriculture, coal, and many other products at a much higher level.
Trump stated: “Our wonderful relationship with India will grow even stronger from here on. Prime Minister Modi and I are GETTING THINGS DONE, something that cannot be said about most! Thank you for the interest shown in this matter!”
Meanwhile, as the article was being prepared, another breaking development occurred. The BLS announced the delay of the January employment report, initially scheduled for Friday, due to a government shutdown. Fearing that the data might negatively impact cryptocurrencies, the postponement of the report is advantageous for them.
