New Delhi, February 21: Following the Supreme Court’s decision on tariffs, a pressing question arises regarding its impact on the recent trade agreement between India and the United States. Will India benefit from this decision? This question was posed to US President Donald Trump during a press conference.
In response, President Trump stated, “No, nothing has changed. They will impose tariffs, and we will not. Our deal with India is that they will impose tariffs. It’s not the same as before. Prime Minister Modi is a gentleman, indeed a very good person, but he was much smarter than those people. He was taking advantage of us. Therefore, we made a deal with India, and now it is a fair agreement. We are not imposing tariffs; they are.”
Another concern is whether this will benefit India. Notably, at the beginning of his second term, President Trump imposed a 25% tariff on India. Additionally, due to India’s oil purchases from Russia, a further 25% tariff was applied, bringing the total to 50%. However, the recent interim trade agreement between India and the US reduced the tariff on India from 25% to 18%. Furthermore, discussions are underway to remove the 25% tariff related to oil purchases from Russia.
Following the Supreme Court’s ruling, Trump announced a global 10% tariff. This means that, like other countries, India will also face a 10% tariff. However, this could raise concerns for Indian exporters, as a 3% Most Favored Nation (MFN) tariff currently applies to Indian exports. With Trump’s new tariffs, an additional 10% charge may be imposed.
The White House clarified that this announcement introduces a 10% ad valorem import duty on goods entering the US for 150 days. This temporary import duty will take effect at 12:01 AM Eastern Standard Time on February 24. Certain goods will be exempt from this temporary import duty to better address the needs of the US economy or to resolve fundamental international payment issues more effectively.
Exempt products include essential minerals, currency and bullion metals, energy and energy products, natural resources, and fertilizers that cannot be sufficiently grown, mined, or produced domestically. Additionally, some agricultural products, including beef, tomatoes, and oranges, pharmaceuticals and pharmaceutical materials, certain electronics, passenger vehicles, light trucks, medium and heavy-duty vehicles, buses, and parts for these vehicles, as well as some aerospace products and informational items (such as books), donations, and accompanying goods will also be included.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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