New Delhi: After the Supreme Court verdict striking down the tariffs of US President Donald Trump, America’s trading partners, including India, will now face a 10 per cent global tariff.
US imposes new tariff on India
In a post on Truth Social, Trump said, “It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately.” Later, the White House also reiterated the same, saying in a statement that, “The Proclamation imposes, for a period of 150 days, a 10% ad valorem import duty on articles imported into the United States. The temporary import duty will take effect February 24 at 12:01 a.m. Eastern Standard Time.”
After the SC ruling, the White House said that US trading partners, like India, who hade tariff deals in place with the US after Trump waged his tariff war, will now also face a 10 per cent duty. This is reportedly a reduction from the higher levels they agreed on previously, with India’s tariff now reduced from 18 per cent to 10 per cent according to a report by news agency AFP quoting a White House official.
Notably, Trump also said after the SC verdict that “India-US trade deal is on.” However, according to a news agency by the AFP quoting a White House official said, the revised tariff measures are “only temporary as the administration will be pursuing other legal authorities to implement more appropriate or pre-negotiated tariff rates.”
SC ruling a blow for Trump
Earlier, on Friday, the US Supreme Court ruled that Trump overstepped his authority when imposing tariffs using a law that is reserved for a national emergency. The SC ruling came as the justices were divided 6-3 over the matter. It ruled that Trump’s tariff war on products entering the country was not permitted under a 1977 law called the International Emergency Economic Powers Act (IEEPA).
The ruling stated that Trump imposed those tariffs under a law which is used in national emergencies. The US Constitution gives the Congress, and not the president, the power to issue taxes and tariffs. However, Trump, according to the SC, exceeded his authority to use tariffs as a key economic and foreign policy tool.