India-US trade deal meeting postponed after tariff changes, what is the real concern for India and global community?
India and the US have decided to reschedule the proposed meeting of their chief negotiators in Washington to finalise the text of the interim trade pact, sources said on Sunday.
The Indian team was scheduled to start the three-day meeting on February 23 in the US. Joint Secretary in the Commerce Ministry, Darpan Jain, is the chief negotiator of India for this agreement.The meeting was scheduled to take place in Washington on February 23-26.
India was originally required to pay an 18% tariff under the agreement, but on Friday, the US Supreme Court struck down all global tariffs.
Following this, Trump first imposed a 10% tariff worldwide on Friday, then increased it to 15% within 24 hours.
Trump's 15% global tariff is now in effect, which is lower than the agreed-upon 18%. Consequently, both sides have decided to review these changes and then set a new meeting date. The postponement of the meeting could delay the trade deal.
The legal battle between US President Donald Trump and the US Supreme Court over tariffs has once again destabilized the global trade system. Trump's response indicates that institutional norms are not the final word for him.
Within hours of the US Supreme Court's decision, Trump invoked Section 122 of the Trade Act of 1974 to impose a new global tariff of 10 percent, and within 24 hours, he increased it to 15 percent. Critics say that this swift and aggressive decision-making style suggests that Trump views policy making as a means of political power-mongering rather than a stable institutional process. This is where the real concern for the global community, including India, begins.
International trade relies on trust and predictability. If the president of the world's largest economy can raise tariffs by exploring alternative legal avenues even after court decisions, the durability of any trade agreement is understandable. Trump's record shows that he first strikes a deal and then doesn't hesitate to change it based on political circumstances.