In a seismic shift for global trade, the US halts emergency tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The US Customs and Border Protection (CBP) announced collections stop at 10:30 AM IST today, following a US Supreme Court verdict three days ago deeming them illegal.
This comes amid escalating trade tensions, making it highly relevant now as President Trump's aggressive policies reshape economies. Economists at Penn Wharton estimate a whopping $175 billion (₹15.75 lakh crore) refund bill for importers.
Supreme Court Blow to Trump’s IEEPA Tariffs
The 6-3 ruling on Feb 20 declared Trump's use of IEEPA for broad tariffs overstepped authority. CBP removed all related codes from its system. Yet, no clarity on refunds for tariffs collected in the last three days—or the massive past haul generating $500 million daily.
Trump fired back on Truth Social, calling the verdict "foolish" but claiming it boosted his powers under other laws. "If any country plays games, higher tariffs await," he warned.
Trump Rolls Out 15% Global Tariff Under Section 122
Hours after the ruling, Trump unveiled a uniform Trump 15% global tariff on all imports starting today, via Section 122 of the 1974 Trade Act. This allows quick 15% levies for 150 days in economic emergencies, needing Congress approval beyond that.
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Exemptions: Beef, tomatoes, oranges, critical minerals, medicines, electronics, passenger vehicles.
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Historical nod: Echoes Nixon's 10% tariff in 1971 amid dollar woes.
Sections 232 (national security, e.g., steel/aluminum) and 301 (unfair trade, e.g., China IP theft) remain intact.
India US Trade Impact: Uncertainty Looms
India US trade impact intensifies. Indian goods, previously at 26-50%, now face this 15% blanket. A temporary US-India deal could ease it, but Congress extension and future legal moves cloud the outlook.
Experts like trade analyst Rajiv Kumar note: "Short-term relief for high-tariff items, but exporters must diversify amid volatility." Actionable tip: Indian firms should audit Section 232 tariffs exposure and eye FTAs.
This US halts emergency tariffs saga underscores Trump's "America First" push, but risks retaliation. Watch for refunds, court challenges, and India talks—global supply chains hang in balance.
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