The US Supreme Court, by a 6-3 majority, declared Donald Trump’s 10-50% tariffs illegal. The verdict came on the misuse of IEEPA. India is expected to get big benefits in many sectors including exports, employment and investment.
US Tariffs on India Lifted: The US Supreme Court has declared the large-scale tariffs imposed by President Donald Trump illegal. The court’s 6-3 majority decision said that the Trump administration misused the International Emergency Economic Powers Act (IEEPA). Under this law, tariffs ranging from 10% to 50% were imposed on many countries, which included India. Now if these tariffs are removed after the decision of the Supreme Court, India will benefit greatly. Do you know what benefit India will get from the removal of tariff?
US Tariffs on India Lifted: What benefit does India get from the removal of tariffs?
If the tariff imposed on India is completely abolished then we can get huge economic benefits. Since America is India’s largest export market. In such a situation, due to high tariffs, Indian products became expensive in America, due to which their demand decreased. Now, with the removal or reduction of tariffs, Indian goods will become cheaper, which is likely to increase India’s exports.
India can get these 4 big benefits
1. Increase in exports
Exports may increase in sectors like textile, gems and jewellery, leather and chemicals.
2. Increase in investment
Indian companies may be encouraged to invest more in America.
3. Less pressure on rupee
Increase in exports will increase the inflow of foreign exchange, which may reduce pressure on the rupee.
4. Possibility of tariff refund
There is also a possibility of getting a refund of the tariff deposited earlier, which can provide financial relief to the companies.
Major Indian products becoming cheaper
1- Textiles and readymade garments (RMG, cotton clothes)
2- Gems and Jewelery (Diamond and Gold Jewellery)
3- Leather and footwear
4- Organic Chemicals
5- Automobile Parts
6- Home Decor and Handicrafts
7- Marine Products (Shrimp and other seafood)
8- Furniture and Sporting Goods
Which sectors are less affected?
Some sectors like pharmaceuticals were already under tariff exemption in many cases, so the direct impact on them will be minimal. However, overall this decision is considered positive for the Indian economy.
impact on global trade
Experts believe that this decision is a big blow to Trump’s strict trade policy. This can provide relief to global trade and improve America’s trade relations with many countries.