0

Trump Hikes Global Tariffs to 15% After Supreme Court Setback.

Share

Supreme Court Strikes Down Earlier Tariffs

US President Donald Trump has raised reciprocal tariffs to 15 percent, escalating global trade tensions. The move comes just one day after the US Supreme Court struck down his earlier tariff order. The court ruled that the emergency powers law used by the administration did not authorize broad trade levies. The 6–3 decision declared the previous reciprocal tariffs unconstitutional.

Trump Responds with Immediate Action

Soon after the ruling, Trump criticized the judgment on Truth Social. He called the verdict “anti-American” and poorly reasoned. Within hours, he announced a new 15 percent global tariff. The earlier rate had been 10 percent. According to Trump, the revised levy is legally sound and necessary to defend US economic interests. He also praised the dissenting justices for supporting executive authority.

Legal Basis and Political Pushback

The Supreme Court clarified that the 1977 International Emergency Economic Powers Act does not grant the president unlimited tariff powers. As a result, the earlier reciprocal tariffs on several countries were invalidated. Trump, however, invoked Section 122 of the Trade Act of 1974 to justify his latest action. Under this provision, such tariffs can remain in place for 150 days unless Congress extends them.

What It Means for India and Global Trade

India had previously faced tariffs of up to 50 percent before negotiations reduced them to 18 percent under an interim trade framework. With the new 15 percent global tariff, India’s effective rate now stands at about 18.5 percent. The change is modest but adds fresh uncertainty. Global markets are likely to remain cautious as legal and political battles over US trade policy continue.