In a swift pivot following a stinging Supreme Court rebuke, President Donald Trump unveiled a fresh tariff strategy Saturday, prompting India’s Commerce and Industry Ministry to launch a detailed review. The ministry’s statement underscores New Delhi’s vigilance amid escalating US trade maneuvers.
Friday’s high court decision was unequivocal: Trump’s expansive tariffs violated constitutional norms by sidestepping Congress. The 6-3 majority invalidated duties imposed without legislative approval under emergency powers legislation.
Undeterred, Trump countered in a press briefing, activating Section 122 of the 1974 Trade Act. This empowers the president to impose surcharges for 150 days to tackle payments imbalances. Starting February 24, a 10% import duty will apply across the board, sparing vital sectors.
Exemptions cover strategic commodities like rare minerals, bullion metals, energy resources, fertilizers, farm produce, drugs, electronics, autos, and others essential to the economy. The White House framed this as a targeted fix for America’s trade deficits.
Trump also tasked trade officials with Section 301 investigations into discriminatory foreign policies harming US interests. Reacting promptly, India’s ministry said: ‘We observed the Supreme Court decision and Trump’s conference. The US administration announced steps, and we are evaluating all effects.’
This episode highlights the fragility of global trade rules. For India, a major US trading partner, the implications could reshape export strategies, supply chains, and diplomatic engagements in the coming months.