Supreme Court pronunciation on Ieya can reform the Tarief Strategy of the US

The global trading landscape shifted again with the US and Japan and the completion of a deal to lower the car rates to 15%, a movement that could offer temporary lighting to Japanese exporters. As an addition to this, US President Donald Trump shed through that semiconductor Chip rates could also be brought to “reasonable levels”, as a result of which questions are asked about the broader direction of global trade policy.

In an interview with ET said that the implications are much deeper into these developments and Jahangir Aziz said in an interview with ET. “They have held these trade agreements, it is because you had an American ruling by the federal court judge that the American court on the decision of the American trade was about a month, month and one and a half ago, that Idepa, a framework on which all the mutual rates and the fentanyl rates are based and the most of the trade agreements are.

Aziz emphasized that the case is probably on its way to the US Supreme Court, with a hearing date for the time being on October 14. “Many of all these trade agreements, etc. high from the fact that if IEEPA is ultimately ruled to be illegal and therefore the US government must go back to more traditional ways to act with rates, then you are essentially three options,” he is added.

According to him, while section 301 – used during the first round of Trump of Chinese rates – sounds legal, it is cumbersome and is intensive. The simpler tool is section 232, with which sectoral rates. “If the US government wants an effective rate rate that close to what they have now, what our estimates are about 16-17%, then these sectoral rates must actually be increased and the number of sectors must be expanded with semiconductors, including pharmaceutical products and other sectors,” Aziz said.

Aziz was careful on the chances of India to achieve a similar concept with the US. “Yes, I mean, we can always hope so, but the way India responded, because you called it diplomatically, is not exactly the way the US expected India to respond,” he noticed.

As an addition to this uncertainty, he marked that other members of BRICs, including Brazil, also navigate uncomfortable trade relationships with Washington. “So I think the only thing we can say at the moment is appearance, the world is much more uncertain. There is very little certainty that one of these trade agreements has brought for the global trade scene.” Turning to the domestic scene of India, Aziz recognized the Upbeat headlines about 8% GDP growth and the government’s GST is a note of a note of the combination. Methodological problem in the way our quarterly GDP figures are calculated, so the less said about the better, “he noticed.

On GST, however, he was more positive. “It is clear that the GST movement is important in the sense that it greatly simplifies the GST structure … It is better than what we had. It is so clear that a very positive move,” Aziz said. He pointed out that the auxiliary measures – estimated at 0.6% of GDP – should increase domestic consumption by about half a percentage point, although the growth impulse will be temporary.

“There is no permanent increase in growth rate,” Aziz concluded. “The increase in growth rates is only the amount of time required to move its consumption at half a percentage point, whether it is a quarter or six months or a year.”