US President Donald Trump has introduced a temporary 10 per cent global import tariff for a period of 150 days, moving quickly after the US Supreme Court struck down several earlier trade duties imposed under emergency powers.
The government issued new executive orders on late Friday under Section 122 of the Trade Act of 1974, only a few hours after a 6-3 Supreme Court ruling that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977 exceeded the powers of the president. The new tariffs are set to come into effect on Tuesday and will apply to all countries, including India, as reported by Hindustan Times.
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Key exemptions under the new tariff
Despite the wide scope of the measure, the administration has retained exemptions for several categories of goods already considered essential to the US economy.
According to a White House factsheet cited by HT, aerospace products, passenger cars, certain light trucks and goods traded under the US-Mexico-Canada Agreement (USMCA) will remain exempt. Pharmaceuticals and pharmaceutical ingredients are also excluded, along with specific agricultural products such as beef, tomatoes and oranges.
Certain electronics, books, donations and accompanying baggage are not subject to the tariff either.
The exemptions extend to critical minerals, metals used in currency and bullion, as well as energy and energy-related products. Natural resources and fertilisers that cannot be sufficiently produced within the United States have also been excluded to avoid supply disruptions.
Why Section 122 was used
Section 122 of the Trade Act allows a US president to impose duties of up to 15 per cent for a maximum of 150 days to address significant balance-of-payments concerns without requiring lengthy investigations. Any extension beyond that period would need congressional approval.
The executive order justified the move by stating that the United States faced a "large and serious balance of payments deficit" that was continuing to worsen.
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"We have alternatives, great alternatives. Could be more money. We'll take in more money, and we'll be a lot stronger for it," Trump said of the alternative tools after the Supreme Court ruling.
What happens next?
While legal challenges to the new tariff are expected, the temporary nature of the measure means it could expire before courts deliver a final judgment. Meanwhile, the administration has launched fresh investigations under other trade laws that could allow tariffs to be reintroduced in a different form.
