Govt studying implications of US Court tariff ruling; Trump remarks

The government is assessing the implications of the ruling by the United States (US) Supreme Court on the US administration’s tariffs as well as the President Donald Trump’s announcement of a 10 per cent duty on several imports for 150 days.

 

“We have noted the US Supreme Court judgement on tariffs yesterday. President Trump has also addressed a press conference in that regard. Some steps have been announced by the US Administration. We are studying all these developments for their implications,” it said in a statement.

 

On Friday, the US Supreme Court ruled that Trump exceeded his authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law intended for national emergencies.

 

 

Following the ruling, Trump announced that starting February 24, 10 per cent tariff will apply on goods imported into the country under section 122, including from India  — unless exemptions are specifically mentioned. As a result, 55 per cent of India’s exports to the US will not attract 18 per cent tariffs.

 

The ruling came weeks after India and the US issued a joint statement towards an interim trade agreement on February 7 stating the contours of the deal. As a first step, the US removed the 25 per cent punitive tariffs imposed on India “in recognition of India’s commitment to stop purchasing Russian Federation oil”. The tariff was expected to reduce further this month, from the existing 25 per cent to 18 per cent.

 

As on Friday evening, a team of officials, led by Darpan Jain, the chief negotiator of the India-US trade deal were expected to head to Washington on Sunday to discuss and finalise the deal's legal text, with an aim to sign the deal by March.