In a major shift in global trade policy, the United States has announced a reset of its tariffs, which lowers duties on Indian exports from 18% to 10%. This move comes just weeks after the landmark India-US trade agreement that had already reduced tariffs significantly. A White House official said the new 10% global tariff applies to all major trading partners, with previous rates of 15% for Switzerland, South Korea, the EU, and Japan, and 20% for Vietnam. The United Kingdom remains at 10%.
Trump reaffirms strong trade ties with India
US President Donald Trump emphasised that the trade arrangement with India remains intact despite the tariff overhaul and a recent Supreme Court ruling limiting his emergency powers to impose tariffs.
โI think my relationship with India is fantastic, and weโre doing trade with India,โ Trump said. He praised Prime Minister Narendra Modi, calling him โa great manโ and noting Indiaโs cooperation in reducing oil imports from Russia.
Supreme Court strikes Trump’s use of emergency powers
The tariff reset follows the US Supreme Courtโs decision restricting Trumpโs use of emergency economic powers. However, the administration assured that all bilateral trade deals, including with India, will continue.
โThis is only temporary, as the administration will pursue other legal authorities to implement more appropriate or pre-negotiated tariff rates,โ the White House official added.
Impact on Indian businesses
For Indian exporters, the new 10% tariff effectively lowers costs and strengthens trade opportunities in the US market. This adjustment comes two weeks after the previous agreement slashed US duties on Indian goods from 50% to 18%, signaling growing economic cooperation between the two countries.
Trump also defended the broader use of tariffs, claiming they have helped settle several international conflicts, and underlined that the India-US trade deal would proceed โin a different wayโ without affecting existing commitments.
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