Will India benefit from the removal of Trump’s tariffs? Know what will be the effect of the court’s decision

New Delhi: US President Donald Trump has received a severe blow from the Supreme Court before the midterm elections. The court rejected the massive tariffs imposed by Trump. He had imposed these tariffs under the law made for national emergency. The Supreme Court said that the President does not have the authority to impose such tariffs. This decision can prove to be very beneficial for India, because it can calm down the ongoing turmoil in trade relations between the two countries, and Indian exporters can benefit from it.

Fear of sudden tariff ends, relief to Indian exporters

This decision of the US Supreme Court has prevented the President from imposing arbitrary tariffs by misusing the IEEPA law. This has brought great relief to Indian exporters. Earlier, sectors like engineering goods, auto parts, chemicals, textiles and jewelery were suffering huge losses due to sudden tariffs. After the decision of the Supreme Court, now the risk of instability in business will be significantly reduced, and doing business will be easier. In such a situation, it is believed that this decision of the Supreme Court can prove to be very important for India.

India will get a chance for better talks

With this decision of the US Supreme Court, America’s tariff policy has now returned to the legal framework supervised by Congress. Now before imposing tariff, investigation, adherence to rules and timely discussion will be necessary. For India, this means that talks can now take place in a more organized manner. Due to this, there will be clear time limit and it will be easy to ask for special discounts on products. Experts say that after the Supreme Court cancels Trump’s tariffs, those exporters who had paid a lot of money in the form of tariffs to sell goods in the American market can get refunds. However, the eyes of the whole world including India are on how this decision will be implemented.

Tariffs on steel and aluminum will remain in place

However, this decision will not affect the tariff imposed under Section 232 of the Trade Expansion Act 1962. This means tariffs on steel, aluminum and some automobile goods will remain the same. This decision is very important for India because America is one of our largest trade partners. At the same time, Trump’s attitude towards India had recently changed and in the beginning of February, he took two major decisions, which were in the interest of India. First, he reduced the tariff on India to 18 percent, and second, he announced an interim trade agreement with India. The agreement was expected to be signed in March.

Relief to China, Canada and Mexico also

Experts believe that this decision of the US Supreme Court will also provide great relief to countries like China, Canada and Mexico. Trump had imposed very high tariffs on these countries. The court’s February 20 decision clearly states that Trump should have taken Congress’s approval to impose tariffs. This has confirmed the power of Congress and will stop Trump’s arbitrariness. Indian manufacturers will benefit from the weakening of some Trump-era tariff rules. India can move forward in those areas where earlier other countries were more affected. Companies will reduce purchasing goods from risky sources and may turn to India. This will open new opportunities in the supply chain and India’s exports can increase.

Latest India News