New Delhi, February 21 (IANS). The reciprocal tariff imposed by President Donald Trump has been removed by the US court. Regarding this, analysts say that with this decision, the tariff on about 55 percent of Indian exports to America can be reduced to between 2.8 percent to 3.3 percent.
Analysts said 55 percent of Indian exports to the US fall under the Most Favored Nation (MFN) tariff.
MFN tariffs are the base rates that the US applies to all members of the World Trade Organization (WTO) and the average US MFN tariff on Indian goods is around 2.8 per cent to 3.3 per cent, varying across regions.
Analysts say that the Supreme Court’s decision should make India reconsider its trade agreement with America.
The Supreme Court’s decision said the US administration had violated its authority under the International Emergency Economic Powers Act by not authorizing sweeping “reciprocal” tariff measures.
According to reports, Chief Justice John Roberts said in the decision that the President claims extraordinary power to unilaterally impose tariffs of unlimited quantity, duration, and scope, but the Trump administration has failed to introduce any legislation in which Congress has previously stated that IEEPA’s language could apply to tariffs.
Reports said the court’s decision would not prevent President Trump from invoking duties under other statutory powers, which have greater procedural limits.
Following this decision by the US Supreme Court, Trump defended the tariffs and said that unknown foreign forces had influenced the judge’s decision.
The White House has clarified that India will face a temporary 10 percent tariff after Trump announced the new global tariff order. The Trump administration has indicated that authority to impose additional tariffs could also be implemented in the coming weeks.
–IANS
abs/
