India is considering removing import taxes on U.S. ethane and LPG as part of broader trade talks with Washington, aiming to reduce its trade surplus and tariff burden, reports Nidhi Verma of Reuters. The move could also extend to U.S. LNG imports. India, already a top U.S. ethane buyer, may face short-term limits in expanding imports due to infrastructure constraints. However, boosting LPG imports is seen as more feasible. The talks align with efforts to finalize a trade deal and expand U.S.-India trade to $500 billion by 2030. Verma writes:
India plans to end taxes on U.S. ethane and liquefied petroleum gas (LPG) imports under broader negotiations with Washington as it looks to reduce its trade surplus and ease its tariff burden, three sources familiar with the matter said.The proposal to get rid of duties for the products used for cooking gas and petrochemical production comes as India mulls scrapping import tax for U.S. liquefied natural gas (LNG) and boosting purchases of the fuel from the United States. […]It is the No.2 buyer of U.S. ethane after China, according to the U.S. Energy Information Administration, importing 65,000 barrels per day last year, compared with 227,000 bpd for China. However, the U.S.-China trade war has sent tariffs surging and is likely to curtail China’s imports. […]It is logistically easier to import more LPG, said Prashant Vashisth, vice president at Moody’s affiliate ICRA. India imports about 60% of its LPG needs.
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