ING’s Deepali Bhargava highlights that India is a notable beneficiary of the US tariff reset, with the elimination of elevated IEEPA surcharges additional lowering its efficient tariff burden after earlier cuts. This transformation coincides with ongoing negotiations on an interim India‑US commerce deal and should strengthen India’s bargaining place whereas easing stress on beforehand weak sectors.
IEEPA elimination strengthens India’s place
“The elimination of elevated IEEPA tariffs delivers a big discount in India’s efficient tariff burden. President Trump had already lowered the punitive 50% tariff on India to 18%, and the elimination of IEEPA surcharges takes this reduction a step additional. Earlier this month, India and the US issued a joint assertion saying an interim commerce deal, although the detailed phrases are nonetheless being negotiated.”
“On this context, the Supreme Courtroom ruling arguably improves India’s negotiating place. With the IEEPA risk now off the desk, India positive aspects extra room to re‑look at parts of the interim settlement that will have been troublesome to just accept beforehand. The shift additionally eases stress on sectors that had been weak to punitive IEEPA therapy, offering India with a bit extra leverage – and respiration area – as talks proceed.”
(This text was created with the assistance of an Synthetic Intelligence device and reviewed by an editor.)
