How will US Supreme Court's decision to strike down tariffs affect India-US trade deal
Following the US Supreme Court's decision to strike down tariffs and Trump's announcement of new tariffs, the India-US trade deal will remain unchanged. Trump stated on Friday that the upcoming agreement with India will remain unaffected and will proceed as before.
In fact, within three hours of the US Supreme Court's decision to strike down tariffs on Friday, Donald Trump announced a 10% global tariff worldwide. In his statement, he stated that he was signing an order imposing a 10% global tariff.
Trump did not comment on whether this additional tariff would be included in the deal with India or adjusted to the previously agreed 18% tariff.
However, a White House official stated that countries that have trade agreements with the US, including Britain, India, and the European Union, will now face a 10% global tariff under Section 122, rather than the tariff rate they had previously negotiated. This will reduce the total tariff on India from 18% to 10%.
Interim trade agreement with US will be finalized by Feb end: Goyal
Commerce Minister Piyush Goyal announced on Friday that the interim trade agreement with the United States will be finalized by the end of February. It will be signed in March, and fully implemented in April.
In addition, India will finalize trade agreements with major countries in the coming months. Free trade agreements with Britain and Oman are also expected to be signed in April.
Starting February 23, officials from India and the United States will hold a crucial three-day meeting in the United States. The purpose of this meeting is to prepare a legal draft based on the Joint Statement issued on February 7. Chief Negotiator of the Ministry of Commerce, Darpan Jain, will lead the Indian delegation.
It is expected that the official order to reduce the tax from 25% to 18% will be issued this week or next. This will directly benefit India's textile, leather, and gems and jewelry sectors.