Could US Lawmakers End the 50 Per Cent Tariff on India?
Synopsis
Key Takeaways
- Resolution aims to abolish the 50 per cent tariff on Indian imports.
- Key lawmakers emphasize economic harm caused by these tariffs.
- Ending the tariffs could enhance US-India relations.
- Tariffs disrupt supply chains and elevate consumer costs.
- Legislators are advocating for a return to collaborative trade policies.
Washington, Dec 13 (NationPress) A coalition of prominent Democratic legislators has put forward a resolution in the US House of Representatives aimed at abolishing the 50 per cent tariff on imports from India, which they label as unlawful and economically detrimental.
Led by Indian American Congressman Raja Krishnamoorthi, alongside Congresswoman Deborah Ross and Congressman Marc Veasey, this resolution seeks to revoke President Donald Trump's national emergency that sanctioned tariffs as high as 50 per cent on Indian imports, which they characterize as illegitimate and harmful to economic interests.
This legislative action comes on the heels of a bipartisan measure approved by the Senate that aims to lift tariffs imposed on Brazil and address what lawmakers perceive as the president's misuse of emergency powers to elevate import duties.
According to the resolution's proponents, it would annul the national emergency that President Trump invoked under the International Emergency Economic Powers Act (IEEPA) to enforce sweeping tariffs on Indian goods. Additionally, it would eliminate the extra 25 per cent “secondary” duties implemented on August 27, which were applied on top of previously established reciprocal tariffs. This combination has increased duties on numerous Indian-origin products to as high as 50 per cent.
“President Trump’s reckless tariff strategy towards India is counterproductive and undermines a vital partnership,” Congressman Krishnamoorthi stated. “Rather than promoting American interests or security, these tariffs disrupt supply chains, negatively impact American workers, and elevate costs for consumers. Eliminating these harmful tariffs will enable the United States to collaborate with India in advancing our mutual economic and security objectives,” he added.
Congresswoman Ross emphasized that the repercussions of these tariffs extend beyond trade policy discussions in Washington, affecting states like North Carolina, which enjoys strong commercial and community connections with India.
“North Carolina’s economy is intricately linked to India through trade, investment, and a thriving Indian American community,” she noted. “Indian companies have poured over a billion dollars into our state, generating thousands of high-paying jobs—particularly in the Research Triangle’s life sciences and technology sectors.”
Ross highlighted the reciprocal nature of this relationship, with North Carolina manufacturers sending substantial quantities of goods to India annually.
“In turn, North Carolina manufacturers export hundreds of millions of dollars worth of goods to India each year, covering pharmaceuticals, chemicals, and advanced machinery,” Ross remarked. “When Trump destabilizes this partnership with illegitimate tariffs, he jeopardizes jobs, innovation, and our long-term competitiveness in North Carolina.”
Congressman Veasey reiterated the tariffs' impact on consumers, especially amid rising affordability challenges across the nation. “India stands as a crucial cultural, economic, and strategic ally, and these unlawful tariffs act as a tax on everyday North Texans who are already grappling with affordability issues at every level,” he stressed.
The three lawmakers have positioned themselves as vocal opponents of the Trump administration's tariff policies, advocating for a reset in US-India relations.
In October, Ross, Veasey, and Krishnamoorthi, along with Congressman Ro Khanna of California and 19 other House members, urged President Trump to mend what they described as the strained relationship between the US and India and to roll back tariff policies they consider detrimental.
Supporters of the resolution contend that employing emergency powers to impose extensive tariffs circumvents legislative authority and breeds uncertainty for businesses and workers on both sides of the trade equation.
They argue that abolishing the tariffs on India aligns with a broader initiative to prevent the president from “unilaterally enacting misguided trade policies” using emergency powers and to restore stability to US trade relations with key partners.