The latest in the ongoing Trump Tariff issue- A trade court in the US found the US President Donald Trump overstepped his authority by imposing across-the-board duties on imports from U.S. trading partners. While the Trump administration is appealing against the ruling in the United States’ Supreme Court, the question is, how does it impact India? Global Trade Research Initiative (GTRI) said that India should proceed cautiously in its ongoing Free Trade Agreement (FTA) negotiations with the US.
What’s next for India
Analysing the impact of the ruling on Trade negotiations, Ajay Srivastava, founder of GTRI, said that India should analyze the impact of the court ruling before finalizing a trade deal with the United States. Ajay Srivastava, founder of GTRI, said to that the tariffs imposed by President Trump violate not just the domestic laws of the United States, as confirmed by the federal court, but also the rules of the World Trade Organisation.
“With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favour U.S. interests,” said Srivastava in a statement to ANI.
Tariff imposed on India so far by Trump administration
On April 2, Trump announced 26 percent tariffs on products entering the United States from India. April 10 was set as the effective date for the tariffs. However, the tariffs have been put on hold for a period of 90 days, till July 9, as the countries are discussing a bilateral trade deal.
For now, Indian exports to the US face a 10 percent baseline tariff.
Impact of ruling on global markets
The US Federal Court ruling on the Trump tariffs has received a positive reaction from the prominent stock markets of the world. The US Court judges have also ordered the Trump administration to issue new orders reflecting the permanent injunction within 10 days. All eyes are now on the Trump administration and their next step after they filed a notice of appeal and questioned the authority of the court.