The Union Commerce Ministry on Saturday said that the government is studying developments in the United States on tariffs and their implications for India.
“We have noted the US Supreme Court judgement on tariffs,” the ministry said in a statement. “Some steps have been announced by the US administration. We are studying all these developments for their implications.”
The statement came a day after the US Supreme Court struck down global tariffs imposed by Trump, ruling in a 6:3 verdict that he had exceeded his authority. The judges said that the 1977 International Emergency Economic Powers Act, which Trump had invoked, “does not authorise the president to impose tariffs”.
Soon after the Supreme Court ruling, Trump signed a proclamation imposing a temporary 10% levy on articles imported into the United States.
The new tariffs will take effect for a maximum of 150 days, unless the US Congress approves an extension. This, however, leaves the status of recently-signed trade deals with other countries unclear.
With respect to India, Trump said on Friday that “nothing changes” and that the levies on New Delhi will continue. “They’ll be paying tariffs and we will not be paying tariffs,” he told reporters at the White House.
According to the framework for the deal with India, US tariffs on Indian goods were to be reduced to 18% from a combined rate of 50%. The earlier rate of 50% had included a punitive levy of 25% imposed in August over India’s purchase of Russian oil.
In April, Trump imposed “reciprocal” tariffs on dozens of countries, including India, claiming high tariffs the countries imposed on US goods. The levies were eventually reduced once bilateral trade deals had been agreed to, including in the case of India.
Meanwhile, in view of the US Supreme Court striking down Trump’s global tariffs, the Congress has demanded that Modi put the trade agreement on hold and renegotiate its terms.
Addressing a press conference on Saturday, Congress MP Jairam Ramesh said that Trump had stated that the Supreme Court’s judgement had no bearing on the deal between India and the US, and asked whether the Modi government agreed with the US president’s remarks.
On Friday, Union Commerce and Industry Minister Piyush Goyal said that the interim trade agreement between India and the US is likely to be signed in March and operationalised in April.
A three-day meeting between officials from New Delhi and Washington to finalise the legal text of the agreement is expected to begin in the United States on February 23.
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