The clash over tariffs intensified in the U.S. following a Supreme Court ruling. President Donald Trump openly expressed his grievance by stating that the court had barred him from imposing "even a dollar of tax" on other countries. The court declared the 'Reciprocal Tariff' introduced in April unlawful under the 1977 IEEPA statute.
In a media briefing, Trump described the decision as "shameful." He voiced his discontent over the court’s restriction on imposing minor tariffs, insisting he could halt trade or impose an embargo on any country. He remarked, "Can I close trade with any nation, levy an embargo, but I'm unable to impose even a dollar of tariff?" Trump insinuated that the ruling might be aimed at shielding other nations rather than safeguarding U.S. interests.
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Despite the setback, Trump swiftly responded by signing a new 10% "Global Tariff" from the Oval Office. This tariff is implemented under Section 122 of the 1974 Trade Act, which permits the President to impose up to a 15% duty for a maximum of 150 days without formal investigation. Extending beyond 150 days would necessitate Congress approval.
Tariff Policy to Persist Despite Court Orders
President Trump affirmed that his tariff policy would persist irrespective of the court's ruling. He claims that previously imposed tariffs have generated "hundreds of billions of dollars" for the U.S. and hinted at exploring alternative legal routes to potentially gather more revenue.
The Impact on Tariffs Imposed on India Post-Court Ruling?
Concerning the trade agreement with India, Trump clarified that the Supreme Court ruling would not provoke any changes. Reports indicate that White House officials have assured that nations engaged in trade agreements with the U.S. would maintain a 10% tariff rate until new rates are finalized.
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Legal experts predict that the newly imposed 10% global tariff might face court challenges; however, as it is constrained to a 150-day period, it's plausible that the legal process may extend beyond the tariff's expiration.
In essence, the tariff dispute is far from conclusion. The tug-of-war between the Supreme Court and the White House could impact both American politics and global trade dynamics in the coming months.
