Kranthi Bathini, Director – Equity Strategy at WealthMills Securities, called this a big sentiment booster for the Indian markets, while it was a blow to the Trump administration. His tariffs created a lot of uncertainty and ambiguity for the world, he added.However, he warned investors to keep an eye on developments in the coming days and watch for what the Trump administration will do as a “face-saving” measure. He said Trump has weaponized tariffs and even the 10% global tariff also needs to be vetted by the US Congress. Since trade does not fall under the scope of emergency measures, his subsequent decisions will also be subject to scrutiny, he said.
Following the SC’s decision, Trump signed documents to impose a 10% tariff on imports from all countries, which he said “will take effect almost immediately.”
“It is my great honor that I just signed from the Oval Office a 10% global tariff for all countries, which will take effect almost immediately,” he said in a post on Truth Social.
While the 18% tariff burden is likely to be off India, more details will emerge in due course. But the new global tariff of 10% applies to Indian goods for now. An ANI report quoting a White House official said India will have to pay 10% until another authority is invoked. “Yes, 10% until another authority is invoked.” Markets veteran Gurmeet Chadha also welcomed the US Supreme Court’s decision, saying, “The Supreme Court’s ruling on tariffs is welcome news, especially for underserved markets like India. This is also a political setback with the midterms looming and approval ratings low.”
“The focus will shift to stimulating the economy and lowering inflation. That means less global uncertainty and flip-flops,” the Managing Partner and CIO of Complete Circle Consultants said in a tweet.
Also read: Trump has made tariffs central to his presidency. Chaos could be next
SC ruling on India: What does it mean for markets?
“Removing reciprocal tariffs will free about 55% of Indian exports to the US from 18% tariffs, making them subject only to standard MFN tariffs,” the Global Trade Research Initiative (GTRI) analysis said.
According to the think tank, Section 232 tariffs will continue, 50% on steel and aluminum and 25% on auto parts. Meanwhile, products representing about 40% of export value, including smartphones, petroleum products and medicines, will remain exempt from US tariffs, the report further said, citing the GTRI analysis.
So, investors should keep an eye on the movements of the metal stocks to avoid possible disappointments, while also keeping an eye on the EMS and generic pharmaceutical sectors.
In response to the ruling, Wall Street’s major indexes also ended higher, with the Dow 30 closing with a gain of 0.5%. The S&P 500 Index and Nasdaq Composite closed up 0.70% and 0.90%.
Also read: US Supreme Court ruling overturning Trump tariffs could deter bond vigilantes
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of The Economic Times.)
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