- The United States Supreme Court has cancelled the global tariffs imposed by former President Donald Trump. The court ruled that the tariffs were invalid. The United States will change its trade agreements with partner countries which include India.
- The White House announced that a uniform 10 percent tariff will now apply to all affected countries. Earlier agreements included higher tariff rates. The new decision establishes a temporary 10 percent tariff which replaces all previously established rates. For India this means a reduction from 18 percent to 10 percent.
Supreme Court Cancels Earlier Tariffs
- The tariffs began during Donald Trump’s presidential term. The tariffs affected multiple countries across various industries. The Supreme Court ruling rendered those tariffs ineffective according to the decision.
- Donald Trump criticized the court’s decision. He stated that a 10 percent tariff would be imposed on countries worldwide. He also signed executive orders related to this measure. The White House announced that the 10 percent tariff will remain active for 150 days which will begin on February 24th.
- A White House official described the move as temporary. The administration is reviewing legal options to reintroduce higher tariff rates if needed.
Impact on US–India Trade Relations
- The ruling will affect the trade framework between the United States and India. The Trump administration established a 25 percent tariff on most countries which included India during his first month in office. The administration imposed an additional 25 percent tariff because India purchased oil from Russia. The total tariff rate on Indian goods reached 50 percent after this increase.
- The two countries reached an agreement for temporary trade rules after their negotiation process. The agreement reduced tariffs on India from 50 percent to 18 percent through the existing trade arrangement.
- The 18 percent rate will be eliminated because the Supreme Court reached its decision. The upcoming period will impose a 10 percent tariff which lasts for 150 days. The administration is studying different ways to increase tariff rates at a later time.
Temporary Measure With Possible Extensions
- The 10 percent tariff applies to multiple trade partners, not only India. The White House has clarified that the measure is temporary. The 150-day period still has a chance to receive extension according to current conditions.
- The government will make trade policy decisions after conducting legal evaluations and completing existing diplomatic talks. Negotiators will continue to discuss tariff changes during ongoing discussions.
- The United States introduced a substantial change to its trade policies through this development. The new policy decreases Indian tariff rates which will remain in effect until the next future period. The upcoming period will establish permanent tariff rates which remain undecided at this moment.
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