India to Pay 10% Tariff Under Trump's New Global Order, White House Confirms
The White House has officially confirmed that India will be subject to a 10% tariff on imports to the United States, as announced by President Donald Trump in a new executive order signed on Friday. This development follows a significant legal setback for the Trump administration, with the US Supreme Court ruling that his previous global tariffs were illegal.
White House Clarifies Tariff Position for India
When questioned about whether India would have to pay the 10% tariff and if it would replace earlier tariffs imposed under the International Emergency Economic Powers Act (IEEPA), a White House official provided a clear response. "Yes, 10% until another authority is invoked," the official stated, emphasizing the temporary nature of this measure under current legal frameworks.
The official further advised all US trade partners to adhere strictly to their existing trade agreements, underscoring the administration's commitment to enforcing trade terms. This new 10% global tariff is a key component of President Trump's protectionist trade agenda, designed to tackle balance-of-payments issues and counteract what he perceives as unfair trade practices by other nations.
Trump Announces Global Tariff After Supreme Court Rebuke
In the wake of a major legal defeat at the US Supreme Court, which delivered a stunning 6–3 decision against his tariffs, President Trump moved swiftly to implement new measures. He announced a 10% global tariff that would take effect immediately, terming the Supreme Court's ruling a "terrible decision."
"Effective immediately, all the national security tariffs under Section 232 and existing Section 301 tariffs remain in place... Today, I will sign an order to impose a 10% global tariff under Section 122 over and above our normal tariffs already being charged," Trump declared during his announcement.
This executive order leverages Section 122 of the Trade Act of 1974, which permits the imposition of a temporary import surcharge of up to 15% for a duration of 150 days. The primary objective of this authority is to address balance-of-payments deficits, aligning with Trump's broader economic strategy.
No Changes to India-US Trade Deal, Says Trump
Earlier on Friday, President Trump addressed the status of the India-US trade relationship, asserting that there would be no alterations to the existing trade deal. "Nothing changes, they'll be paying tariffs, and we will not be paying tariffs. So, the deal with India is they pay tariffs," Trump explained, highlighting a reversal from previous arrangements.
He praised Prime Minister Narendra Modi as a "great gentleman" and "great man," but noted that India had previously been "ripping us off." Trump described the current agreement as a "fair deal" where India pays tariffs to the US, while the US does not reciprocate, characterizing it as a "little flip" in trade dynamics.
This statement comes after Trump and Modi announced earlier this month that they had reached an agreement on a trade deal. A delegation from India is expected to travel to the United States in the coming days to finalize the interim trade agreement, ensuring that both nations adhere to the terms outlined by the Trump administration.
The imposition of this 10% global tariff marks a significant shift in US trade policy, with India directly impacted by the new measures. As the situation evolves, trade partners worldwide are closely monitoring developments, particularly in light of the Supreme Court's ruling and Trump's subsequent actions to reinforce his protectionist agenda.
