US India Trade Deal: What will be the impact of cancellation of tariffs? Trump says there will be no change; Will 10% tariff remain?
Indian and American officials will hold a crucial three-day meeting in the United States from February 23rd.
Questions are being raised about whether India will have to pay an 18% tariff or a 15% tariff.
New Delhi: The US Supreme Court struck down President Donald Trump's tariffs on countries around the world on Friday. However, hours later, Trump announced the imposition of a 10% tariff. The following day, on Saturday, he announced an increase to 15%.
In this context, questions are being raised about whether India will have to pay an 18% tariff or a 15% tariff.
Trade deal with India will not be affected: Trump
President Trump stated in a press conference on Friday that the trade deal with India will not be affected and will proceed as before.
According to a BBC report, a White House official stated that countries that have trade agreements with the US, including Britain, India, and the European Union, will now face a 10% global tariff under Section 122, rather than the tariff rate they had previously negotiated. Based on this, it will remain at 15% after Saturday's announcement.
If the BBC report is accurate, the total tariff on India will be reduced from 18% to 10%, meaning it will remain at 15% after Saturday's announcement, while Trump's statement indicates an 18% tariff.
Watching the Matter Closely: Indian Government
Following the Supreme Court's decision on tariffs and Trump's press conference, the Indian government stated that it is closely monitoring the entire matter. The Ministry of Commerce and Industry stated on Saturday that the potential impact of the new steps taken by the US administration on India is being assessed.
According to the Ministry, Friday's Supreme Court decision and Trump's press conference have been noted. The US has also announced certain decisions. The government is reviewing these developments to determine their potential impact on India and trade between the two countries.
Trade Deal to be finalized by February end
Commerce Minister Piyush Goyal, while talking to the media on Friday, before the Supreme Court's decision, stated that the interim trade agreement with the United States would be finalized by the end of February. It would be signed in March and fully implemented in April.
In addition, India will finalize trade agreements with major countries in the coming months. Free trade agreements with Britain and Oman are also expected to commence in April. Indian and American officials will hold a crucial three-day meeting in the United States from February 23rd to prepare a legal draft based on the Joint Statement issued on February 7th.
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