On February 9, Jin10 reported that institutional analysis suggests the U.S.-India trade agreement is not a pact of mutual respect between two major economies. According to Jin10, the agreement operates more like an International Monetary Fund-style bailout. While competitors like Thailand, Malaysia, Indonesia, and Vietnam have finalized formal agreements, the text seen by Indian citizens on Saturday reveals it is merely a 'temporary' trade framework.
Indian exporters have benefited from reduced tariffs, with the 50% tariff imposed since August being halved. The remaining tariff is defined as a punitive measure against India for 'indirectly funding Putin's war in Ukraine through the purchase of Russian oil.' However, this reduction is not a pardon but more akin to parole.
In another executive order, U.S. President Donald Trump announced the formation of a committee led by Commerce Secretary Howard Lutnick to monitor whether India 'directly or indirectly' imports Russian oil. Based on the committee's assessment, the U.S. may reinstate the 25% punitive tariff at any time.