The United States Supreme Court verdict against the steep import tariffs imposed by President Donald Trump is expected to benefit countries like India and China, while the European Union, United Kingdom, and Japan may be at a disadvantage.
The revised tariff structure may create a set of winners and losers, despite the ruling not having any major implications for the US economy itself, according to a report by ANI, which quoted an ICICI Bank note.
Among the beneficiaries of the court verdict will be developing countries like India, China, and Brazil. Countries and groupings like the European Union, United Kingdom, Singapore, and Japan may face a setback in terms of trade with the world’s largest economy.
The US Supreme Court last week declared the high import taxes imposed by the Trump administration last year unconstitutional. The tariffs were imposed under the provisions of the International Emergency Economic Powers Act (IEEPA).
However, the ICICI Bank report, as cited by ANI, said that tariffs imposed under Section 232 of the US Trade Expansion Act and Section 301 of the US Trade Act will not be impacted by the court ruling. Hence, a certain level of trade restrictions will continue to remain in place.
After the reciprocal tariffs were struck down by the Supreme Court, President Trump implemented an import tax of 15 percent for 150 days under Section 122 of the Trade Act.
Tariffs placed under the above-mentioned laws would require a formal process, including investigations by authorities, before their implementation. The process may take three to six months before import taxes under these laws could be imposed, the report said.
The court ruling has delayed the finalisation of the India-US trade deal, which was to be implemented from April. Talks between the two countries have been postponed as an Indian delegation cancelled its visit to the US last week.
According to media reports, the government is assessing the impact of the court order on the trade deal. While many American goods will get duty-free access to the Indian market, the majority of Indian goods were to face an 18 percent tax under the deal.
