In the wake of the US Supreme Court’s decision on tariffs, US President Donald Trump said there is no change in the trade deal with India and emphasised that the India deal is on.
He said that his relationship with India is fantastic and they are doing trade with India. President Trump said this at a news conference last night in the White House hours after the US Supreme Court verdict striking down his sweeping tariffs.
Earlier this month, Trump issued an Executive Order removing the 25 per cent punitive tariffs imposed on India. Under the trade deal, Washington will charge a reduced tariff on New Delhi, lowering it from 25 per cent to 18 per cent.
Meanwhile, a White House official has clarified that the tariff on India will drop to 10 per cent temporarily following US President Donald Trump’s announcement of a new global tariff. The new tariff will replace the earlier International Emergency Economic Powers Act (IEEPA)-based duties that were struck down by the Supreme Court.
The clarification by the White House indicates that the newly announced 10 per cent global tariff under Section 122 is not in addition to previously imposed IEEPA tariffs on India, but replaces them for now. The White House response confirms that, at least temporarily, the applicable rate for India would fall to 10 per cent under the new Section 122 authority.
The current adjustment reflects both legal constraints imposed by the US court and the administration’s stated intent to continue pursuing, through alternative statutory mechanisms.
Back home, External Affairs Ministry has said that both India and the United States are working to finalize the mutually beneficial trade agreement as per the Joint Statement adopted recently. Addressing media in New Delhi, Ministry spokesperson Randhir Jaiswal said that a delegation from India, led by the chief negotiator, will visit the US next week.