India’s Finance Minister has stated it is premature to assess the impact of newly imposed US tariffs on the Indian economy. With the US Supreme Court striking down earlier levies and a temporary 10% surcharge now in place, India is cautiously evaluating trade implications before making definitive comments.
Key Highlights:
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The US Supreme Court recently struck down reciprocal tariffs imposed under the International Emergency Economic Powers Act, resetting the trade equation.
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In response, Washington introduced a temporary 10% across-the-board import surcharge, effective for 150 days.
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India’s Finance Minister emphasized that it is “too soon” to gauge the precise impact on the Indian economy, noting that trade flows and negotiations remain in flux.
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The Commerce Ministry confirmed that India is actively studying the tariff changes and their implications for exporters, particularly in sectors like textiles, pharmaceuticals, and IT services.
Contextual Insights:
India’s trade negotiators have postponed their scheduled visit to Washington, reflecting the uncertainty surrounding tariff structures and interim trade agreements. Analysts suggest that while the 10% surcharge is lower than previous levies, its short-term nature complicates forecasting for businesses.
Sources: Business Today, The Hindu, Economic Times