The Tariff is Illegal: US Supreme Court

Washington: US trading partners, including India, that have reached tariff deals with Donald Trump’s administration before the Supreme Court verdict, will now face a 10 per cent duty, despite higher levels they may have agreed on previously, the White House has said. The certification came after the US Supreme Court struck down Trump’s sweeping and often arbitrary duties, delivering a stinging rebuke of his signature economic policy. 

Following the tariff setback, the American commander-in-chief has imposed an additional 10 per cent duty on imports into the United States. After signing the new tariff order, Trump said on social media that it was “effective almost immediately”.

The new duty is slated to take effect on February 24 for 150 days, with exemptions remaining for sectors under separate probes, including pharma, and for goods entering the US under the US-Mexico-Canada agreement, according to a White House factsheet.

The White House said that US trading partners, like India, that reached tariff deals with the United States after Trump’s tariff diktat will now also face a 10 per cent duty, despite the higher levels they may have agreed on previously.

But a White House official told news agency AFP that the Trump administration would seek ways to “implement more appropriate or pre-negotiated tariff rates” down the line.

The United States and India earlier this month announced they reached a framework for an interim agreement on trade after Trump issued an executive order removing the 25 per cent punitive tariffs imposed on India for its purchases of Russian oil and reduced the reciprocal duties on New Delhi from 25 per cent to 18 per cent.

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