The Tamesis
A U.S. Supreme Court decision to lift tariffs imposed by President Donald Trump has plunged Asian countries into chaos and uncertainty, with some rethinking earlier trade deals with Washington.
India on Monday postponed its planned trade mission to Washington to “finalize the legal text” of the interim trade deal announced by Trump earlier this month, becoming the first country to take concrete steps against the ruling.
The agreement reduces India’s export tariffs to 18% from the previous 50%.
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The Indian delegation was scheduled to meet the U.S. delegation on Monday, but officials explain The visit will now be postponed “until both parties can study the implications of recent developments”.
Following a Supreme Court (SCOTUS) ruling, Trump on Saturday New ‘temporary tariffs’ announced 15% of 150 days – the maximum allowed by law. This means India will now face lower tariffs than those decided in its interim deal with Washington.
New 15% global tariffs will take effect on Tuesday.
Ajay Srivastava, founder of the New Delhi-based Global Trade Research Initiative, told CNBC that “India, like other countries, will face 15% tariffs in addition to most-favored nation status (usually about 2-3%).”
“The 18% tariff negotiations were based on certain premises and some of the benefits have now disappeared. Now, both sides have to rethink their strategies,” Srivastava said.
The interim deal would require India to buy $500 billion worth of U.S. goods over five years, ranging from energy supplies to aircraft and parts, precious metals and technology products.
It also requires New Delhi to partially open its long-protected agricultural sector to imports from the United States – a decision that has caused uproar in India’s farming community.
However, the trade department will now “study the impact of the judgment and subsequent announcements by the United States”. Reuters reportsciting sources in the department.
The source also said that Indian officials had discussed the decision to postpone trade talks with their US counterparts, adding that “no new date for the visit has been set yet”.
China calls for “tariff removal”
Meanwhile, Beijing has taken a tougher stance on the ruling.
It urged the United States on Monday to lift previously announced “unilateral tariffs.”
China’s Commerce Ministry said it was conducting a “comprehensive assessment” of the impact of the ruling and called on Washington to lift the tariffs, According to AFP.
“China urges the United States to cancel unilateral tariff measures against its trading partners,” the Commerce Ministry said in a statement. “There are no winners in trade wars and there is no way out for protectionism.”
China’s Ministry of Foreign Affairs also stated that it is “paying close attention” to potential measures by the United States to maintain the imposition of additional tariffs.
“The United States is currently planning alternative measures such as trade investigations to maintain the increased tariffs on trading partners. China will continue to pay close attention and resolutely safeguard China’s interests.”
Experts say The U.S. ruling will give China the “upper hand” when it comes to hosting Trump from March 31 to April 2.
South Korea and Taiwan want to keep previous deal
Apart from India and China, other major Asian countries affected by Trump’s tariffs have had mixed reactions to the court ruling.
South Korea’s First Vice Finance Minister Lee Hyung-il said on Monday that the ruling would have “limited impact on global financial markets.” The secretary noted that industry-specific tariffs on cars and steel remain in place because the Supreme Court ruling specifically targeted Trump’s country-specific tariffs.
These two industries are the main drivers of revenue for South Korea’s export-reliant economy. The country currently faces a 15% export tax under a January deal with Washington.
In fact, it will be unaffected by new U.S. interest rates.
The country’s finance ministry reportedly said it would “closely monitor” developments in the United States A report from The Korea Times. It said it would work “to ensure that the balance of interests secured through consultations with Washington is not undermined”.
Taiwanese officials have also said they want to retain the “most favorable terms” in the trade deal. Finalized with Washington last week. Island officials held a seven-hour meeting to discuss how the tariff ruling would affect them, According to “Focus Taiwan”the English news website of Taiwan’s Central News Agency.
The earlier agreement gave Taiwan “most-favored treatment for high-tech products” and imposed a 15% tariff on Taiwan’s exports.
“This foundation must be protected, and we must confirm this to the United States immediately,” Taiwan Executive Yuan President Tsao Ching-tai said on Monday.
The agreements between South Korea and Taiwan include commitments to invest $350 billion and $250 billion in the United States, respectively.
Meanwhile, the largest such commitment comes from Japan, explain On Monday, it said it would still abide by its commitment to invest $550 billion in the United States. Tokyo faces the same industry-specific taxes as South Korea.
What will happen in the future?
The decision by the conservative-majority Supreme Court was widely seen as a “landmark ruling.” Courts have largely sided with Trump since he returned to office last year.
The ruling reverses Trump’s signature economic policies that have disrupted global trade, upended global stock markets and left investors facing huge economic uncertainty.
Still, U.S. Trade Representative Jamieson Greer told U.S. media on Sunday that U.S. trade deals with China, the European Union and other partners will remain in effect despite the ruling.
At the same time, Trump also said that his administration is looking for “other alternatives” to replace the removed tariffs. “We have other options. Good options,” Trump said on Friday.
Meanwhile, U.S. Customs and Border Protection said it would stop imposing tariffs starting Tuesday following the Supreme Court ruling.
Reuters pointed out Despite the ruling, U.S. agencies will still have three days to effectively impose tariffs deemed illegal. CBP did not give a reason for its decision.
economist says More than $175 billion in U.S. tariffs may now require refunds.
- Vishakha Saxena and Institutions
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