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Indian exporters are set to receive immediate relief following the US Supreme Court's ruling on the US administration tariffs, according to Manoj Mishra, Partner at Grant Thornton Bharat.
The Supreme Court on Friday struck down a huge chunk of President Donald Trump's far-reaching tariff agenda, delivering a major rebuke of the president's key economic policy. The majority ruled 6-3 that the law undergirding those import duties "does not authorize the President to impose tariffs." However, in a swift response, Trump announced a sweeping new 10% global tariff across all trading partners, marking what he signaled as the next phase of his trade strategy after the Supreme Court blocked his previous tariff authority. The president also defended the India trade arrangement, calling it fair and reiterating that the United States will not face duties under the pact. Speaking to ANI, Mishra said, "Indian exporters will get immediate relief, and they will not be required to pay that 25% reciprocal tariff. Even if we would have entered into an Bilateral Trade Agreement (BTA), it would have been reduced to only 18%. So I would say it is very good news for consumers in the US as well as exporters in India." He acknowledged that in the long run, India would miss the slight advantage it had under the BTA, where it was supposed to pay only 18% reciprocal tariff versus 25% for competitors from other labeling countries. "That will be a little disadvantage for us, but overall, since the product cost will go down in the USA and in a price-sensitive market, our MSMEs and products like textiles will get an advantage. It will be like a lifeline for them," Mishra explained. On the question of whether the US would refund money collected through the Trump tariffs, Mishra was skeptical. "Highly unlikely because the amount is already used. And it is not just India that they will be refunding because they have imposed this reciprocal tariff on almost the entire world. If they start refunding to all, their economy will collapse. Though legally they should, I don't think they are going to refund this amount anytime soon." Regarding the way forward for India, Mishra suggested that discussions with the US should focus on seeking some leeway in the BTA agreement, particularly on provisions affecting Indian farmers. "They have taken care of most areas which could have been politically sensitive and would have impacted our farmers in a big way, but still, they have opened certain things that need discussion," he said. He added that America is a very powerful country, and nobody wants to antagonize them. "Despite all this, we would be seen as being with them, rather than arm-twisting. The deal will go, in my opinion, the way we have agreed to, and of course, without this reciprocal damage." (ANI)
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