US Tariff Ruling: FM Nirmala Sitharaman’s First Response After Tariff Decision: 'It Is A Bit Too...'

US Tariff Ruling: The Union Commerce Ministry is closely reviewing the situation, and the Indian delegation will decide on the next course of negotiations with the United States on the proposed trade deal, Finance Minister Nirmala Sitharaman said on Monday, February 23. Commenting on the potential impact of the US tariff ruling on the Indian economy, she added that it would be "too soon" to conclude at this stage.

"On the Indian economy, I think it's a bit too soon for me to comment. On the trade, particularly aside from the Indian economy in general, the Commerce Ministry is reviewing the situation and the delegation will have to take a call on when they're going to go for further negotiations. It's a bit too early for me to comment," said Union Finance Minister Nirmala Sitharaman on the impact of US tariffs.

US Tariff Ruling

The US Supreme Court on Friday struck down the trade tariffs imposed by President Donald Trump on more than 100 nations. In a 6-3 ruling, the SC justices upheld a lower court's decision that the Republican president's use of this 1977 law exceeded his authority. The Supreme Court reached its ​conclusion in a legal challenge by businesses affected by the tariffs and 12 U.S. states, most of them Democratic-governed, against Trump's unprecedented use of this ⁠law to unilaterally impose the import taxes.

Donald Trump Announces To Increase Tariffs After SC Ruling

President Donald Trump came down heavily on the SC ruling and announced that he will impose additional tariffs on nations. Donald Trump said that he would impose global tariffs of 10%, which was later increased to 15%, as he has continued to rail against the SC ruling that struck down his previous import taxes.

The 10% tariffs will come into effect from Tuesday, 24 February. However, there is no clear information about the implementation of 15% tariffs, reported BBC. Trump has announced to impose 15% tariffs under a temporary solution under Section 122 of the 1974 Trade Act.

India-US Trade Deal Talks

While uncertainty over the future of Trump tariffs policy lingers, the Indian and American officials have postponed a three-day meeting scheduled for this week to chalk out the plan for an interim trade deal, reported Hindustan Times citing sources. The development has come weeks after India struck a deal with the US to reduce tariffs to 18% from 25%. However, the recent developments going around US tariff policy is likely to impact India-US trade deal timeline.