Trump raises global tariffs to 15%: How it affects India?
What's the story
US President Donald Trump has announced an increase in the global tariff rate from 10% to 15%. The decision comes a day after the US Supreme Court ruled against his earlier broad tariffs, citing overreach of authority. In a post on Truth Social, Trump said he would be "effective immediately, raising the 10% Worldwide Tariff on Countries...to the fully allowed and legally tested, 15% level." So, how does it affect India? Let's find out.
Impact
Increased tariff adds uncertainty for India
The increase in global tariff rate adds more uncertainty to an already changing tariff regime, particularly for India. Under a February 20 proclamation, the US had imposed a temporary 10% ad valorem import surcharge for 150 days starting February 24. This was in place of the previous reciprocal tariff of 25% on Indian goods and was part of negotiations between Washington and New Delhi.
Tariff implications
Indian exports may face higher rates
Trump's latest announcement of a 15% global tariff indicates that Indian exports could be subjected to a higher rate than the temporary 10% surcharge. However, the exact details of its implementation are still awaited. The Commerce Ministry of India is currently examining the implications of these developments. "We are studying all these developments for their implications," said an official from the ministry.
Trade continuity
Nothing changes, says Trump
Despite the SCOTUS verdict, Trump has insisted that existing trade agreements with India remain unchanged. "Nothing changes. They'll (India) be paying tariffs, and we will not be paying tariffs," he said at a press conference after the ruling.