US Supreme Court Decision Brings Relief to Indian Exporters

Indian exporters welcome the US Supreme Court's decision to overturn tariffs imposed by Trump, offering a significant relief and restoring predictability in India-US trade. The ruling negates reciprocal tariffs but maintains Section 232 tariffs on certain materials, impacting sectors like steel and aluminium.

The US Supreme Court's recent decision to strike down tariffs imposed by former President Donald Trump has been met with approval by Indian exporters. The move is seen as a much-needed respite for Indian firms affected by country-specific duties.

According to the Global Trade Research Initiative (GTRI), this ruling could lead to the removal of 25 percent reciprocal tariffs on India, potentially impacting up to 55 percent of Indian exports to the US, subject only to standard customs duties. The decision aids in restoring predictability in bilateral trade, said SC Ralhan, President of the Federation of Indian Export Organisations (FIEO).

However, significant duties remain on imports like steel and aluminium under Section 232. Critics argue these tariffs, which stem from the 1975 trade deficit debates, might not be justified. Ralhan suggests this ruling could pave the way for more constructive trade engagements between the two nations.

(With inputs from agencies.)