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The US Supreme Court struck down a large part of Donald Trump’s earlier tariff regime, saying he wrongly used emergency powers to impose them.
The consequence: Trump responded saying the invalidated tariffs will be replaced with a blanket global tariff. First, he proposed 10%. Then he raised it to 15%. The new rate is set to kick in this week and will apply across countries.
But there is a catch. This new tariff is being imposed under a different law that allows only a temporary measure. It can stay for 150 days. After that, Congress must approve it or the administration must shift to another legal route.
Now comes the twist. Data analysis by Global Trade Alert shows that countries Trump had earlier targeted the hardest ike Brazil and China may actually see their average tariff burden fall under the new 15% flat regime. Brazil sees the sharpest drop. China follows.
India’s angle: Trump said the US-India trade deal announced on February 2 remains unchanged.
But for now, the bigger issue is uncertainty. A flat 15% global tariff can change competitiveness across sectors overnight. Exporters in textiles, engineering goods, chemicals and auto components will need to reassess pricing.
Responding for the first time after the US Supreme Court cancelled President Trump’s global tariffs, the Indian government said on Saturday that it is reviewing the situation.
