Trump tariff: India gets time to reassess its negotiations with US
NEW DELHI: The US Court's decision to declare President Donald Trump's retaliatory tariff as illegal has given India time to rethink its trade negotiation strategies with the US. In order to escape the retaliatory tariff of 26% on Indian goods exported to the US, India was planning to end the first phase of trade negotiations by June – ahead of the 9 July deadline, when the 90-day relief period ends.
But with the US court questioning the legal validity of the tariff, India may want to go slow on ceding grounds to the US by agreeing to lower tariff on imports from the US, according to government sources.
Queries regarding this sent to the Ministry of Commerce did not elicit any response till the time of writing of this report.
The US Court of International Trade has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorise any of the 'Worldwide, Retaliatory, or Trafficking Tariff Orders'.
'The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by the International Emergency Economic Powers Act (IEEPA) to regulate importation by means of tariffs. The Trafficking Tariffs fail because they do not deal with the threats set forth in those orders,' said the court in its order.
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