Tariff Policy: Trump’s ‘Agnipariksha’, what if the decision comes in favor or against from the Supreme Court? , Donald Trump Tariff Policy Us Supreme Court Verdict Live Updates Explainer

Is Trump’s tariff within legal limits or not?

The Supreme Court will decide whether the tariffs imposed by the Trump administration under the International Emergency Economic Powers Act (IEEPA) were within the scope of the law or not. Not only America, but the eyes of the entire global economy and international business world are fixed on this decision.

What is the IEEPA law and why the controversy?

The IEEPA law empowers the President to take economic decisions in case of emergency. The Trump administration had imposed heavy tariffs on many countries citing this law. Now the question is whether the President had the authority under this law to impose such tariffs without the approval of Congress or not?

What if the verdict comes against Trump?

If the US Supreme Court rules against the Trump administration and finds the tariffs illegal, it would have major legal and economic consequences. In such a situation, the US government may have to return the amount of tariff collected from companies and importers. This amount can be between 100 to 150 billion dollars, which will put huge pressure on the government treasury there.

Global trade policy will be affected

If the tariffs are ruled illegal, the US would have to change the way it conducts trade negotiations with countries like China, Europe and India. This will weaken strategies like trade war and the international trade balance is expected to improve.

The powers of the President will be curbed

In case of a decision against Trump, no future American President will be able to impose arbitrary tariffs citing emergency. Congress’s approval will be necessary for this. This will deal a major legal blow to Trump’s ‘America First’ tariff policy and America will have to prepare a new trade strategy.

What if the decision comes in Trump’s favor?

If the Supreme Court rules in favor of the Trump administration and accepts that the President has the authority to impose tariffs under the IEEPA, then all the disputed tariffs imposed during Trump’s tenure will be considered completely legal. In this situation, companies and importers will not get any refund and billions of dollars of revenue of the US government will be safe.

Pressure will increase on China, Russia and India

With the decision in Trump’s favor regarding tariffs, America will get open legal support for its strategy of creating trade pressure on countries like China, Russia and India. This could lead to Trump taking even bigger tariff steps in the future.

What option does Trump have if he gets a setback from the Supreme Court?

If the Supreme Court’s decision comes against the Trump administration, the government will have some limited but important options. The administration may try to pass a new law through the US Senate. Apart from this, a way can also be found to give the refund of the tariff amount in installments or to defer it through legal means. This decision is not limited to Trump or America only. This will decide how extensive the economic emergency powers of the US President will be in the future and in what direction America’s role in global trade will go.