Kathmandu. US President Donald Trump has announced that he will increase global tariffs from 10 percent to 15 percent. He gave this information through the social media Tooth Social.
Trump said after reviewing a recent decision by the US Supreme Court, he decided to raise the 10 percent tariff to the 15 percent level that is “legally permitted and tested”. According to him, in the next few months, the Trump administration will determine and implement new and legally valid tariff rates.
The U.S. Supreme Court, in a 6-3 majority, ruled that the Trump administration’s use of the 1977 International Emergency Economic Powers Act to impose massive import tariffs exceeded its legal authority. Trump criticized the court’s decision as a “bad decision”.
After the Supreme Court’s decision, Trump signed an executive order under Section 122 of the Trade Act of 1974 to impose a 10 percent global tariff. As per the provision, a temporary import surcharge of up to 15 per cent can be imposed for up to 150 days.
According to a White House official, India will also have to pay this 10 percent tariff and this rate will remain until another legal provision is introduced. The official urged all trading partners to abide by U.S. trade agreements.
Meanwhile, the framework for an interim trade agreement between India and the US was finalized on February 7. The framework aims to promote reciprocal and balanced trade. As part of the interim agreement, India has agreed to reduce or remove some tariffs on US industrial goods and agricultural products.
At the same time, the US has said that it will impose a reciprocal tariff of 18 percent on some goods imported from India. However, if the interim agreement is successfully implemented, tariffs on generic medicines, gems and diamonds and aircraft parts will be removed. Earlier, the US had imposed tariffs of up to 50 percent on goods imported from India, including a 25 percent penalty for importing oil from Russia.
India’s Ministry of Commerce and Industry said it is studying the impact of the US Supreme Court’s decision and the steps announced by the Trump administration. “The overall impact of these developments is being assessed,” the ministry said in a brief statement.
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