India issues first statement on US Supreme Court ruling on tariffs (The Uttam Hindu)

New Delhi (The Uttam Hindu): The Government of India has reacted cautiously to the ongoing tariff developments in the United States following a major ruling by the Supreme Court of the United States. After the court declared former tariff measures introduced by US President Donald Trump as illegal, the Centre said it is closely examining the fresh developments and their possible impact on Indian trade.

The Ministry of Commerce and Industry stated that it is carefully studying both the Supreme Court judgment and the subsequent announcements made by Trump to assess the potential implications for Indian exports.

Trump announces new global tariff after court setback

Soon after the Supreme Court ruling, Donald Trump announced a fresh 10 percent global tariff on imports from all countries. He signed an executive order to implement the move and shared the update on his social media platform Truth Social, stating that he had signed the order imposing a universal 10 percent tariff. According to the announcement, the new tariffs will come into effect from February 24 at 10:31 AM IST.

Earlier tariffs under IEEPA were struck down

The trade dispute intensified after the US Supreme Court ruled that Trump could not use the decades-old International Emergency Economic Powers Act (IEEPA) during peacetime to impose such tariffs. With this decision, the legal basis of the 18 percent reciprocal tariff imposed on India was effectively removed. Experts had suggested that under the Most Favoured Nation status, tariffs on India could have been reduced significantly following the ruling.

Section 122 invoked for new 10 percent tariff

Despite the setback, Trump invoked Section 122, a lesser-used US legal provision, to introduce the new tariff order. This law allows the US President to impose tariffs of up to 15 percent for 150 days without immediate approval from Congress. Using this provision, the new 10 percent tariff has been imposed on imports from all countries, including India.