Trump rescinds punitive tariff on India over purchases of Russian oil

US President Donald Trump has rescinded a punitive tariff on India related to its purchases of Russian oil. This decision is part of an interim trade deal framework between the United States and India, aimed at easing tensions that had arisen over India's oil imports from Russia. The additional 25% levy that was imposed as a punishment has also been shelved, according to Deutsche Welle. Prior to this announcement, Indian refiners had significantly reduced their purchases of Russian oil, with reports indicating that imports could almost halve from already weakened levels. This reduction was influenced by the threat of tariffs following Trump's initial mention of the trade deal in a social media post. All state-owned and private refiners, except for Nayara Energy Ltd, had paused buying any spot cargoes of Russian oil in response to the tariff threat, as noted by sources familiar with the situation (South China Morning Post). The interim trade deal is part of ongoing negotiations between the two nations, which will also address remaining issues such as services, investment, labor, and government procurement (The Hindu). The framework aims to move both countries closer to a broader trade agreement, as highlighted by Nikkei Asia. The developments mark a significant shift in US-India relations concerning energy imports and trade policies.