President Donald Trump’s decision to increase import tariffs on more than 70 countries has created a big controversy within the United States. A US court has said that it is a violation of a 1977 law, which was made to deal with a domestic crisis. The court said that unilateral tariffs on so many countries are against international trade rules and US law.
On August 29, the court called Trump’s reciprocal tariff rule inappropriate and gave the Trump administration until October 14 to appeal to the high court. In response, the Trump administration has requested an expedited hearing in the Supreme Court in November. The decision could have a serious impact on the US economy. Treasury Secretary Scott Besant said that if the Supreme Court rejects Trump’s decision, the government could have to return a large portion of the tariffs it has collected so far, up to $750 billion. The Customs Department has so far collected $70 billion from the new tariffs, which is half of the total collection for the year.
Trump has also started putting pressure on countries that buy oil from Russia. He has warned of imposing additional tariffs on them. According to Besant, if the US and the European Union jointly impose a second round of sanctions, it could seriously damage the Russian economy. India has also been affected by this policy. India previously imposed a 25% tariff on oil purchased from Russia, which has now been increased to 50%. This rate will take effect from August 27.
According to further sources, the legal battle over the huge tariffs imposed by Donald Trump has intensified. Trump has appealed to the Supreme Court after a lower court declared the tariff invalid. If the Supreme Court upholds the lower court’s decision, the US government could have to pay back around Rs 17 lakh crore, which could have a profound impact on the US economy.
The tariffs imposed by US President Donald Trump are currently at the centre of a major legal battle. The tariffs have been imposed on many countries around the world. A lower court has declared the tariffs invalid, after which Trump has appealed to the US Supreme Court. According to US Treasury Secretary Scott Besant, if the Supreme Court nullifies the tariffs, the government will have to pay back about half of the tariffs, i.e. around $100 billion (around Rs 8 lakh crore). This will be a big blow to the US treasury. The case is important for countries like India, including the US, as it can affect the price of imported goods. The Trump administration claims that they have alternative legal remedies. The Supreme Court’s decision will be important for the future of Trump’s economic policy.
