US Supreme Court Ruling Eases Tariff Burden on Indian Exporters

The US Supreme Court has overturned significant tariffs imposed by former President Donald Trump, providing relief to Indian exporters. Despite the new announcement of a 10% global tariff, Indian goods will be exempt from previous heavy duties, boosting exports, especially in the textile sector.

The United States Supreme Court's recent decision to overturn wide-ranging tariffs imposed by former President Donald Trump has brought immediate relief to Indian exporters. Manoj Mishra, Partner at Grant Thornton Bharat, confirmed the news, which challenges a core aspect of Trump's economic policy.

The court's majority ruling highlighted that the President lacked the authority to impose the earlier tariffs. In response, Trump unveiled a new comprehensive 10% global tariff affecting all trading partners. However, he maintained an exemption for Indian goods, describing the bilateral trade pact as fair.

Mishra emphasized the positive impact for Indian exporters, as they avoid the looming 25% reciprocal tariff. He noted the potential disadvantage in losing the reduced 18% rate but stressed that lower product costs in the US would benefit Indian MSMEs and exports, such as textiles, contributing significantly to the price-sensitive market.

(With inputs from agencies.)