New Delhi, April 10
The temporary relief on the US reciprocal tariffs front gives businesses and India vital space to stabilise supply chains and adapt operations, while also providing policymakers an opportunity to work toward more sustainable trade agreements, industry experts said on Thursday.
US President Donald Trump has announced a lower rate of 10 per cent for 90 days in reciprocal tariffs for trading partner countries that have not retaliated with higher levies on American goods — such as India — and further hiked the levy on China to 125 per cent for hitting back.
“President Trump’s 90-day pause on tariffs for India and several other countries reflects a tactical recalibration rather than a fundamental policy shift — but it’s a welcome development from both US consumers and global geopolitics perspectives,” said Ashok Chandak, President of SEMI IESA.
While this pause opens the door to reassess global trade dynamics, underlying tensions and uncertainty persist due to the existing 10 per cent baseline tariff on most US imports and what comes after 90 days, he mentioned.
The move of imposing country-specific tariffs is a significant development in the context of the global trade landscape.
“The impact goes beyond tax and may lead to disruption of supply chains, business models, and could potentially pause existing investment and business plans,” said Prashant Bhojwani, Partner, Tax and Regulatory services, BDO India.