Only 10% tariff for all countries, including India

Donald Trump rebuked by the US Supreme Court

Washington (USA) – The Supreme Court of the United States rebuked President Donald Trump over his decision to impose sweeping higher import tariffs on multiple countries. In a 6–3 ruling, the Court held that Trump did not have the authority under the International Emergency Economic Powers Act (IEEPA) of 1977 to impose tariffs. The majority observed that if Congress had intended to grant the President the “distinct and extraordinary power” to levy tariffs under IEEPA, “it would have done so expressly.”

Following the ruling, the Trump administration immediately announced a uniform 10% global tariff. Recently, after announcing a trade understanding with India, the US had indicated a reduction in tariff rates from 50% to 18%. However, in light of the Court’s order, a flat 10% import duty will now apply to all countries, including India.

Chief Justice John G. Roberts Jr. noted that under IEEPA, the President had imposed import duties on nearly every country that is a US trading partner. The Court stated that while the executive may respond to national emergencies, the constitutional authority to levy taxes and regulate commerce lies with Congress. Referring to the structure, history and limits of the statute, the majority indicated that such tariff powers cannot be exercised without clear congressional authorisation.

New tariff for five months

After the ruling, Trump signed a new executive order imposing a 10% global tariff on goods imported from all countries, with immediate effect. Posting on social media, Trump said that signing the order levying a 10% duty on all countries was “an honour.”

The order has been issued under Section 122 of the Trade Act of 1974 and will remain in force for 150 days (five months). During this period, the administration stated that it would conduct the necessary reviews to determine appropriate tariff measures for specific countries.

Trump criticises Supreme Court justices

Reacting sharply to the verdict, Trump criticised members of the Court, stating that some justices “do not dare to do what is right for the country” and adding that he was “ashamed” of them. He further said that, in the interest of America’s security, he could impose even higher tariffs if required.

US earned $175 billion through tariffs

The United States has reportedly earned more than $175 billion in additional revenue through import duties. US Treasury Secretary Scott Bessent stated that the Treasury has the capacity to refund tariff collections if required. However, the Court indicated that any refund process could create administrative complications.

No clear ruling on the refund of collected tariffs

The Supreme Court did not issue a definitive direction regarding whether the money already collected under the tariffs must be refunded. Three of the nine justices dissented from the majority’s view, declaring the tariff actions unlawful. Among them, Justice Brett Kavanaugh expressed concern that refunding the collected amounts could lead to significant confusion and disruption.

At a press conference at the White House, when asked about the billions of dollars collected through tariffs, Trump said, “That’s a good question. We have collected billions of dollars so far, but nobody talks about what we have done with that money. The Supreme Court has not written anything about whether we should keep it or return it. If a case is filed, I think it could take five years to decide. The Court has delivered a terrible and faulty ruling. In my opinion, people with less understanding have written this verdict.”

‘India was cheating us earlier’

Responding to a question regarding India, Trump said, “There will be no change in the trade agreement between India and America. They will pay import duty, and we will not. Prime Minister Modi is a great person. He is more brilliant than his opponents. But from America’s point of view, India was cheating us. Now we have made a proper agreement. We will not pay them any duty, and they will pay us 18% tariff.”

However, under the newly signed order, the 10% tariff will apply to all countries, including those that have trade agreements with the US. A senior official from the Trump administration confirmed that the uniform 10% duty would be applicable across the board.

Democrats welcome the Court’s decision

The opposition Democratic Party welcomed the Supreme Court’s ruling. Senate Minority Leader Chuck Schumer said, “This is a victory for every American consumer. Trump’s illegal decision has collapsed. He tried to govern like a dictator and created turmoil across the world. The trade war he launched may now finally come to an end.”