NEW DELHI: Amid the uncertainty triggered by the US Supreme Court order invalidating Trump’s tariffs, govt has decided to reschedule the visit of the Indian team to Washington DC for finalising the legal text of the interim framework of the trade deal.
Commerce department officials said the two sides were of the view that the visit by chief negotiator Darpan Jain and his team should be rescheduled until the latest developments and their implications have been evaluated.
Jain was to hold three-day consultations, starting Monday, ahead of US Trade Representative Jamieson Greer’s visit to India to sign the agreement. The two sides have so far agreed on the broad framework which reflects understanding but no mutually binding commitment.
But the US Supreme Court ruling against reciprocal tariffs and subsequent levies by American president Donald Trump has complicated the equations.
Change in the travel itinerary of Jain and other negotiators is significant in view of indications in certain govt quarters that the Modi administration may not be averse to exploring if the SCOTUS’s ruling has created elbow room to seek better terms.After the US court’s order, Malaysia and Indonesia, which had finalised agreements with the US over tariff, have emphasised that nothing has been notified.
South Korea, according to NY Times, has said that judicial disapproval of Trump’s tariffs has nullified its 15% reciprocal tariff deal with the US. Significantly, while reacting to SCOTUS rebuff, Trump had on Friday said that the deal with India was on.
Govt officials said the legal analysis of US actions is underway along with the possible impact on trade and strategic ties.With an additional 15% tariff under Section 122 of the Trade Act of 1974, all countries have now been put at the same level, at least for 150 days.Yet, with the threat of further action by Trump – who is seen to have weaponised tariffs – remains and his statements so far indicate that countries will have to negotiate levies individually, while allowing greater market access for American goods.USTR Jamieson Greer has indicated that the US President can also use Section 338 of the Tariff Act of 1930, which allows for up to 50% tariffs on countries that unreasonably discriminate against US trade through tariffs, regulations or other measures.
