India-US Trade Deal: The scheduled meeting between the chief negotiators of India and the US on the interim trade pact is set to be postponed amid uncertainty on the global emergency tariff imposed by President Donald Trump. The news agency, PTI, quoting the government sources, reported that India and the US have decided to reschedule the chief negotiators' meeting on the interim trade pact. The meeting was supposed to take place this week.
India To Face 15% Tariffs In US
Meanwhile, India will face a reduced tariff of 15 per cent from February 24 for 150 days, after US President Donald Trump announced a new global levy on imports into America following a Supreme Court verdict against his earlier sweeping tariffs.
What Has India Said On Tariff Uncertainty?
The Indian government said it was studying tariffs and their implications. The Commerce Ministry on Saturday issued a statement, saying, "We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard. Some steps have been announced by the US administration. We are studying all these developments for their implications."
What's Road Ahead?
India has not made any clear statement, which means New Delhi has adopted a 'wait-and-watch' strategy as Trump has not been consistent on his words. The coming days are crucial as further developments in the US will decide the direction of the US-India trade deal.
ALSO READ: Trump Increases Global Tariffs From 10% To 15% Day After Setback From US Supreme Court
In a proclamation titled 'Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems' dated February 20, Trump said he is imposing, for a period of 150 days, a temporary import surcharge of 10 per cent ad valorem" on articles imported into the US, effective February 24. The next day, Trump again changed his stand, declaring 5 per cent more tariffs, which means the new tariff rate of 15 per cent is applicable to countries worldwide, including India.
Earlier, in a major setback to Trump's pivotal economic agenda, the US Supreme Court ruled that the tariffs imposed by Trump on nations around the world were illegal and that the president had exceeded his authority when he imposed the sweeping levies. Further, a fact sheet issued by the White House said Trump is invoking his authority under Section 122 of the Trade Act of 1974, which empowers the President to address certain fundamental international payment problems through surcharges and other special import restrictions.
(With agencies inputs)