We are studying the possible impacts…Indian government’s first statement after Supreme Court setback on tariffs

New Delhi : There has once again been great turmoil in the battlefield of global trade. The US Supreme Court on Friday gave a big blow to President Donald Trump by declaring his old tariff orders ‘illegal’. But Trump immediately hit back on Saturday by announcing a new global tariff of 10 percent on all imports. India’s Ministry of Commerce and Industry is now analyzing these rapidly changing developments and their far-reaching economic impacts on Indian exports in great depth.

Global tariff of 10 percent will be applicable

Let us tell you that the US Supreme Court, while giving a historic decision, said that Trump was misusing the five decade old emergency law during peace time. Due to this, the legal basis of 18 percent reciprocal tariff imposed on India was completely destroyed. Although. Instead of accepting defeat, Trump immediately signed a new executive order from the Oval Office. He proudly announced on social media that now a 10 percent global tariff will be imposed on goods coming to America from all countries.

Trump took recourse to Section 122

In fact, to give legal effect to his new decision, this time Trump has taken the help of a lesser-known law called ‘Section 122’. This special authority allows the President to impose tariffs up to a maximum of 15 percent for 150 days without congressional approval. This new 10 percent fee will become effective on February 24 at 10:31 am Indian time. This swift action by Trump has given trading partners around the world very little time to recover and think.

Indian government keeps a close eye on the global situation

The Indian government is keeping a very close watch on this entire global situation. The Commerce Ministry has said in its official statement that they are taking close cognizance of the Supreme Court’s decision and Trump’s recent press conference. Ministry experts are trying to understand how this sudden change in trade rules will affect Indian textiles. What will be the impact on the cost of pharma and engineering products. The government is currently adopting a ‘wait and see’ strategy and assessing its future steps.

Wide fluctuations in tariff rates

Immediately after the court decision, there was hope that the tariff on India would be reduced to only 3.5 percent. Which was earlier applicable under ‘Most Favored Nation’ status. This could have been a huge relief and victory for Indian exporters. But Trump’s new 10 percent order has made this relief very short-term. The pleasant hope of reduction from 18 percent to 3.5 percent has now come down to 10 percent. Due to which there is an atmosphere of great uncertainty in the international market.

New debate started in the international world

This step of Trump has started a new debate in the international business world. Since the new tariffs are effective only for 150 days. After that Trump will have to take formal approval from the US Congress. The main challenge for India is how to protect its trade interests during this transition period. In the coming days, a new round of high-level diplomatic talks can begin between the two countries so that Indian exports can be saved from any major economic loss.