Trump Gets Setback from Supreme Court, How Much Tariff Does India Need to Pay Now?

New Delhi: US President Donald Trump has created a global uproar with his tariff policies. His tariff policy sparked a trade war between the US and several other countries. However, Donald Trump’s tariff campaign received a setback from the US Supreme Court, setting a precedent.

During a hearing, the Supreme Court declared all tariffs imposed by Donald Trump illegal and invalid. The Supreme Court stated that the power to impose tariffs or taxes in the US rests with Parliament, not the President. Donald Trump initially imposed a 25% tariff on India, which he then increased to 50%. He then made a significant reduction to 18%. The details of the tariffs India will have to pay on its exports to the US due to the US Supreme Court’s decision can be found below.

Supreme Court Deals a Setback for Trump

Donald Trump’s tariff policy received a setback from the Supreme Court. The US had imposed a 25% reciprocal tariff and then raised it to 50%, but it was reduced to 18% as soon as the India-US trade deal was finalised.

Now that the US Supreme Court has declared the Trump tariffs illegal, Trump has announced a 10% global tariff. Questions are being raised about the amount of tariff that will be imposed on India. Will it be 18%, 10%, or 13.5%? Let’s understand.

Tariffs on India fluctuate.

No one has been able to escape US President Donald Trump’s tariff policy. He created a trade war-like situation with his tariffs. Now, the Supreme Court has declared his tariff policy illegal. There is confusion about how much tariff India will have to pay on its US exports. US tariffs on India have been fluctuating.

When Donald Trump launched his tariff attack on the world in April last year, a 25% reciprocal tariff was initially imposed on India. Trump then abruptly doubled the tariffs on India to 50% in August, citing India’s purchase of Russian oil as the reason. He imposed an additional 25% tariff as a penalty for India’s support in the Ukraine war.

How much tariff could India have to pay?

With the 18% tariff being repealed after the law change, the US tariff on India would be reduced to just 3.5%. Before Trump’s decision, India was paying this amount due to its Most Favoured Nation status. On the other hand, enraged by the court’s decision, Trump quickly invoked Section 122 to immediately impose a 10% global tariff. This would replace the repealed tariff. In this situation, the US tariff on India would become 13.5% after the additional 10% tariff was added.