Trump Raises Global Tariffs To 15% After Court Blow

On Saturday, US President Donald Trump declared that tariffs on all nations would be raised from 10 per cent to 15 per cent.

Following a Supreme Court verdict against his earlier sweeping tariffs, Trump on Friday imposed a 10 per cent tariff on all countries, including India, from February 24 for 150 days.

The Indian government said on Saturday that it is researching these and their implications in relation to the 10 per cent levy.

"Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court, please let this statement serve to represent that I, as President of the United States of America, will be, effective immediately, raising the 10 per cent Worldwide Tariff on Countries, many of which have been "ripping" the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15 per cent level.

"During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again," he said in a social media post.

In a proclamation titled 'Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems' dated February 20, Trump said he is imposing, for a period of 150 days, a "temporary import surcharge of 10 per cent ad valorem" on articles imported into the US," effective February 24.

The US Supreme Court declared that Trump's tariffs on countries worldwide were unlawful and that the president had overreached himself when he imposed the sweeping levies, which was a significant blow to his crucial economic agenda during his second term.

Additionally, according to a White House fact sheet, Trump is using Section 122 of the Trade Act of 1974, which gives the President the ability to impose tariffs and other unique import restrictions in order to fix certain basic issues with international payments.

Due to the demands of the US economy, certain commodities will not be subject to the temporary import charge, according to the fact sheet.

The products include: pharmaceuticals; certain electronics; passenger cars, some light trucks, some medium and heavy-duty vehicles, buses, and some aerospace products; natural resources and fertilisers that cannot be grown, mined, or otherwise produced in the United States; certain critical minerals, metals used in currency and bullion, energy, and energy products; and some agricultural products, such as beef, tomatoes, and oranges.

Trump lashed out at the Supreme Court justices who ruled against him, calling them "fools and lapdogs".

"The Supreme Court's ruling on tariffs is deeply disappointing, and I'm ashamed of certain members of the Court, absolutely ashamed for not having the courage to do what's right for our country," he told reporters at the White House on Friday, just hours after the verdict came in.

The US President also said that "nothing" changes in the trade deal with India in the wake of this verdict, as he responded to the ruling by announcing an additional 10 per cent global levies on items imported into America.

"Nothing changes. They'll (India) be paying tariffs, and we will not be paying tariffs. So deal with India is that they pay tariffs. This is a reversal of what it used to be... So we made a deal with India. It's a fair deal now, and we are not paying tariffs to them, and they are paying tariffs. We did a little flip," Trump said.

The Indian commerce ministry, in a statement, said the government is studying the developments on the US tariffs and their implications.

"We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard. Some steps have been announced by the US administration. We are studying all these developments for their implications," it said.

Welcoming the 10 per cent tariff, the apex exporters' body, the Federation of Indian Export Organisations (FIEO), said the move would boost the competitiveness of labour-intensive sectors such as gems and jewellery and engineering.

"The reduction of the US reciprocal tariff on India improves competitiveness for key sectors such as pharmaceuticals, electronics, engineering goods, textiles, and gems and jewellery, particularly amid supply chain diversification," FIEO Director General Ajay Sahai said.

He added that while Section 232 tariffs on steel, aluminium, copper (50 per cent), and some auto products (25 per cent) remain a barrier, India should take advantage of its improved position to increase its market share and pursue trade talks for greater stability and sectoral relief.

Since India's competitors would now also have to pay the lowered rate of 10%, it is unclear how much the lower tariffs will help Indian exporters.

If India looks at renegotiating its trade deal with the US, he said India is unlikely to renegotiate out of compulsion.

"However, both sides may recalibrate negotiations in light of the changed tariff environment. The ruling creates an opportunity to pursue a more balanced and rules-based framework rather than one driven by unilateral tariff actions," Sahai said.