Since coming to power, US President Donald Trump has rattled several countries across the world with his tariffs. India is also on the list of affected nations. Citing the reason that India is purchasing oil from Russia, he imposed an additional 25 percent tariff, taking the total to as high as 50 percent. It is known that recently, after an agreement between the two countries, these tariffs were brought down to 18 percent. In this backdrop, the US Supreme Court delivered a major shock to Donald Trump. The Supreme Court of the United States ruled that the President cannot impose tariffs arbitrarily without the approval of the legislative body, that is, Congress, and that this authority rests only with the legislature. However, Donald Trump has continued to criticize even the Supreme Court judges. He alleged that they have no patriotism and have surrendered to foreign forces.
With the Supreme Court’s orders, the tariff issue appears to have returned to square one. After the court’s directives, Donald Trump made another key announcement. He declared that a 10 percent tariff would be imposed on imports. The White House stated in a recent announcement that a 10 percent tariff would be implemented on countries with which trade agreements had previously been signed. This tariff will come into effect from February 24. However, the White House also mentioned that the exemptions previously granted on imports related to pharmaceuticals and certain other sectors would continue.
The White House further stated that even countries that are facing higher tariffs despite trade agreements would also be subject to only a 10 percent tariff. However, sources said that the Trump administration is exploring alternative routes to impose tariffs in accordance with trade agreements. After the Supreme Court’s verdict, US President Donald Trump also responded to the trade agreement reached with India. He said the deal would continue. He stated that India would pay tariffs to the US, while the US would not pay any tariffs, adding that this would not place any burden on America. He said this situation is different compared to the past.
However, those observing Trump’s aggressive stance since returning to power for a second term say that he may focus on alternative approaches regarding tariffs. Meanwhile, after the Supreme Court’s orders, there is still no clarity on whether the tariffs collected so far by the US would have to be refunded to business entities in the respective countries. Despite the Supreme Court’s verdict, Donald Trump has said that he has a Plan B, which has raised doubts among many about what unusual decisions he might take regarding tariffs in the coming days. However, for India, instead of the earlier agreed 18 percent tariff, it will now have the opportunity to trade with the US at a 10 percent tariff. The same will apply to other countries as well.