Trump Slaps 10% Global Tariff on All Imports After Supreme Court Setback;What Will be The Impact on India?

Big development came from the United States this morning that could once again shake global trade. The US President Donald Trump has signed an executive order imposing a 10% tariff on imports from all countries. He took the decision after a major legal setback from the US Supreme Court on February 20th. The new tariff is expected to take effect from February 25th, leading to a rise in trade tensions with possible consequences for countries like India and major global economies.

Reason Behind Trump's New Tariff Announcement

On February 20, the US Supreme Court ruled 6-3 against Trump's earlier sweeping tariffs that were imposed under the International Emergency Economic Powers Act (IEEPA). The court said the law does not give the President authority to impose broad, global tariffs.

After the judgment was passed, Trump strongly criticised the ruling and called it a "disgrace." However, instead of stepping back, he quickly shifted strategy and used another legal provision to continue his trade policy push.

To bypass the court setback, Trump invoked Section 122 of the Trade Act of 1974. This law allows the US President to impose temporary tariffs of up to 15% for 150 days to address balance-of-payments problems or trade deficits.

Using this provision, Trump announced a 10% tariff across all imports. The tariff is non-discriminatory, meaning it applies to every country equally. However, if the government wants to extend it beyond 150 days, it will need approval from Congress.

Impact of the 10% Tariff

The new order means that all goods entering the United States from any country will now face an additional 10% tax. This tariff will be added on top of existing duties such as Section 232 tariffs imposed on national security grounds and Section 301 tariffs which are imposed over unfair trade practices. Imported goods will now become more expensive in the US market. That could increase prices for American consumers and create pressure on exporting nations.

How Will This Impact India?

India will also be affected by this decision. Despite recent trade negotiations between India and the United States, White House officials confirmed that India will face the same 10% tariff.

Earlier, India had faced tariffs as high as 50% under previous policies, but after talks, some duties were reduced to around 18%. Now, this fresh 10% tariff could increase costs again for Indian exporters.

Sectors that may feel the impact include textiles, steel, engineering goods and auto components. If Indian products become more expensive in the US, demand could slow down, affecting exporters and manufacturers.