The political turmoil in America regarding the huge tariffs imposed on India has intensified. The tariffs of up to 50 percent imposed on Indian products by President Donald Trump citing national emergency have now come under the target of the US Parliament. Three members of the US House of Representatives have introduced a resolution to abolish this decision, calling it illegal. This step is not only being considered an open protest against Trump’s trade policy, but can also prove to be an important turning point for India-US relations.
This proposal has been presented together by Deborah Ross, Mark VC and Indian origin MP Raja Krishnamurthy. The purpose of the proposal is to end the National Emergency Order, under which first 25 percent and then an additional 25 percent secondary duty was imposed on many products coming from India, taking the total tariff to 50 percent. This duty was imposed under the International Emergency Economic Powers Act (IEEPA).
Impact on economy and employment
Lawmakers say that this decision is neither in the interest of the American economy nor beneficial for common consumers. Congresswoman Deborah Ross said that North Carolina’s economy is deeply linked to India. Indian companies have invested more than one billion dollars there, creating thousands of jobs. In such a situation, increasing tariffs on India directly harms American employment and business.
Inflation and bilateral relations
Texas MP Mark Veasey said that these tariffs are like a tax on ordinary Americans, who are already struggling with rising inflation. He says that India is an important economic and strategic partner of America and such decisions weaken the relations between the two countries.
Impact on supply chain
Indian-origin MP Raja Krishnamurthy also called Trump’s tariffs counterproductive. He said that this disrupts the supply chain, harms American workers and increases the burden of inflation on consumers. According to him, eliminating these tariffs will strengthen economic and security cooperation between America and India.
This proposal has come at a time when a bipartisan initiative has already been taken in the US Senate against the tariffs imposed on Brazil. It is clear that Congress now wants to curb unilateral business decisions through the emergency powers of the President. If this proposal goes ahead, it could pave the way for removal of 50% tariff imposed on India and there could be a new warmth in the relations between the two countries.
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