U.S. Supreme Court to Review Trump-Era Tariffs; GTRI Calls for Indian Action

Swift Summary:

• A U.S. Court of Appeals ruled that Donald Trump’s tariffs,implemented under the International Emergency Economic Powers Act (IEEPA),exceeded presidential authority,but left them in place pending a Supreme Court case in October.
• These tariffs include duties up to 50% on imports from countries like India and Brazil, affecting global trade flows considerably.
• brazil responded swiftly with a $5.6 billion support program and retaliatory measures to mitigate the impact of tariffs.
• India has not yet launched relief measures, leaving its exporters vulnerable to high costs and reduced competitiveness.
• The Global Trade research Initiative (GTRI) urged India to implement a 10-point plan including revival of export schemes, digital platforms for trade facilitation, structural reforms in customs clearance, budget boosts for trade promotion efforts, and institutional strengthening.
• the ruling marks a notable test for limits on U.S. presidential power concerning unilateral tariff actions.

Indian Opinion Analysis:

The court ruling represents an critically important shift toward legal accountability in global trade matters but underscores India’s vulnerability due to lack of proactive measures against protectionist shocks. While Brazil’s response showcased agility through financial support and legal countermeasures via WTO actions, India’s passive stance risks further marginalizing its exporters across key sectors like garments and engineering goods.

With billions at stake amid prohibitive tariffs that threaten competitiveness globally-not just within the U.S.-India could gain from adopting recommendations outlined by GTRI proactively rather than waiting for the uncertain Supreme Court outcome later this year. Such steps may help indian exporters navigate immediate challenges while fostering long-term resilience through diversification strategies.The principle takeaway is clear: both fairness in global trading norms and swift domestic policy interventions are vital ingredients for safeguarding national economic interests. Whether New Delhi leverages this narrow window remains critical as external dependence grows increasingly costly.

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