US President Donald Trump announced an hike in the worldwide tariff from 10% to 15%, effective immediately, via a fiery social media post. He framed the move as retaliation against decades of countries ‘ripping off’ America without consequence- until his arrival. “I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries… to the fully allowed, and legally tested, 15% level,” Trump declared, signaling no pause in his protectionist push.
Legal pivot after court setbacks
The escalation follows recent judicial hurdles, with Trump pivoting to ‘legally permissible’ authorities to sustain tariff momentum. He promised forthcoming announcements on additional duties over the next few months, building on prior 10 per cent global levies struck down or limited by courts. This step aims to replace invalidated measures while probing unfair practices, ensuring revenue streams and supply chain shifts favour US manufacturing.
Bold vision for economic dominance
Trump touted the policy as core to “Making America Great Again- GREATER THAN EVER BEFORE,” projecting massive revenue and industrial revival. The blanket hike targets imports broadly, sparing select exemptions for critical goods and layers atop existing steel, aluminum and sectoral duties. Critics warn of inflation spikes and retaliation, but the administration eyes long-term gains in jobs and self-reliance.
Global ripples and future moves
Nations from allies to adversaries face immediate cost surges, potentially disrupting trade flows amid ongoing Section 301 probes. Trump’s rhetoric underscores unrelenting pressure, positioning tariffs as the era’s economic weapon to reclaim US leverage on the world stage.
White House confirms India faces new US tariffs amid fresh trade tensions
In a 6-3 ruling, the US Supreme Court declared that President Trump’s use of the 1977 International Emergency Economic Powers Act (IEEPA) for sweeping import tariffs exceeded executive authority, prompting a swift policy pivot. Trump labeled the decision “terrible” and immediately announced a 10% global tariff via Section 122 of the 1974 Trade Act, now escalated to 15%. This temporary measure, capped at 15% for 150 days, targets balance-of-payments issues while new duties loom.
India locked into tariff payments
A White House official confirmed to media that India must pay the new 15% levy until further authority replaces it, urging all partners to honor US trade pacts. This overlays prior 18% reciprocal rates under Executive Order 14257 on key Indian exports like textiles, apparel, leather, chemicals, and machinery- down from a 50% peak tied to Russian oil imports. Exemptions may apply post-agreement for pharmaceuticals, gems, and aircraft parts.
Interim US-India trade deal framework
Announced February 7, the Interim Agreement marks a bilateral milestone, with India slashing tariffs on US industrial goods, distillers’ grains, sorghum, nuts, fruits, soybean oil, wine, and spirits. In reciprocity, the US pledged reductions on select Indian items upon full implementation, bolstering supply chains. Yet the new global tariff clouds progress toward a broader Bilateral Trade Agreement (BTA).
Trump’s rapid response and future levies
The hike builds on Friday’s 10% order, with Trump vowing more “legally permissible” tariffs soon to counter decades of alleged exploitation. This defies the court’s curb on emergency powers, aiming to safeguard revenue and reshore manufacturing despite inflation fears.
India’s Commerce Ministry noted the ruling and administration steps, pledging to analyse implications carefully. Amid resilient exports and rupee buffers, New Delhi eyes diversification to blunt impacts on labor-intensive sectors like gems, textiles, and autos.