New Delhi, February 20 (IANS). The decision given by the US Supreme Court against reciprocal tariffs has reduced the uncertainty regarding tariffs for India to a great extent. Industry experts say the decision sets clear legal limits on the president’s powers to impose unilateral tariffs.
It is noteworthy that under the interim trade arrangement, America had agreed to reduce the reciprocal tariff on India to 18 percent. Now after the decision of the Supreme Court, this system has become irrelevant.
Manoj Mishra, partner and tax controversy management leader at Grant Thornton India, said, “Any attempt to impose such tariffs will no longer be possible without Congressional approval. This is likely to provide significant relief and a competitive edge to Indian exporters. It may also open the way for the reversal of tariffs imposed without adequate legal basis.”
However, experts believe that America may resort to sector-specific tariffs under Section 232 in strategic sectors. In such a situation, it will be necessary to take forward the bilateral trade agreement between India and America, so that long-term tariff stability and assured access to the market can be provided.
This decision is being considered a big blow to the economic policies of US President Donald Trump. The Supreme Court rejected the sweeping tariffs by a 6-3 majority, saying that under the 1977 emergency law the President did not have the authority to impose such sweeping import duties.
Chief Justice John Roberts, writing the majority decision, said, “The President has asserted extraordinary power to impose unilateral tariffs of unlimited amount, duration, and scope. The exercise of such power clearly requires the approval of Congress.”
He also said that the 1977 law, citing which the tariffs were imposed, does not meet the test of express approval of Congress.
Experts believe that this decision will bring stability in global trade and will provide relief to other trading partner countries including India.
–IANS
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