Trump unfazed: 15% temporary tariff to apply to India and others for 150 days, extension needs Congress approval

KOCHI: US President Donald Trump has opened a new warfront by imposing a 15 percent global tariff on foreign products after the US Supreme Court ruled to cancel reciprocal tariffs. The move has been made under Section 122 of the Trade Act of 1974, which allows the imposition of temporary tariffs of up to 15 percent for 150 days. Trump had initially announced a 10 percent tariff, but it was increased to 15 percent on Saturday night. The tariff has not been targeted at any specific country, and this is the first time the provision has been used.

The tariff will be in force from February 24 to July 24. The US Congress has the authority to extend or cancel it. Trump has also directed Commerce Department officials to submit a report assessing which countries could face additional tariffs in a way that benefits US trade. This will be examined under Sections 301 and 232. Reacting to the Supreme Court’s decision to cancel reciprocal tariffs, Trump said on Truth Social that the judges’ decision was “ridiculous” and that he remains committed to increasing tariff revenue.

No change in trade understanding with India
The White House clarified that tariffs on products from trade partners, including India, will temporarily be set at 15 percent. Indian exporters will not have to pay the earlier 18 percent tariff under existing agreements. Trump also stated that there will be no change in trade understandings with India even after the Supreme Court verdict. He added that India will continue to pay tariffs while the US will export products without tariffs.

Refund of 13,350 crore dollars likely
With the Supreme Court striking down the reciprocal tariffs imposed using the President’s emergency economic powers, the government may have to refund about 13,350 crore dollars (Rs 12.28 lakh crore) to exporters. This amounts to nearly 57 percent of last year’s total tariff revenue. Although the court ruling does not specifically mention refunds, exporters are expected to seek them.

We are reviewing the reduction in trade tariffs. The US administration has announced certain new measures.
-India’s Commerce Ministry

Indian-Origin lawyer who fought against Trump
Indian-origin lawyer Neal Katyal played a key role in the Supreme Court case that led to the cancellation of the reciprocal tariffs. He appeared on behalf of small business groups. Katyal had earlier served as Acting Solicitor General during the presidency of Barack Obama, and his parents are immigrants from India.