What is the news?
US President Donald Trump has suffered a major setback from the US Supreme Court. The court ruled against the tariffs and declared them unconstitutional. Ruling by a 6-3 vote, the court said Trump overstepped his bounds when he imposed his “reciprocal” tariffs globally using a law wielding federal emergency powers. Let us tell you, Trump has imposed huge tariffs on many countries in his second term.
What did the Chief Justice say?
Chief Justice John Roberts said, “When Congress delegated its tariff authority, it did so in clear terms and subject to strict limitations. If Congress had intended to delegate the exclusive and extraordinary power to impose tariffs, it would have expressed it clearly, as it has done in other tariff laws.” The rescinding of the tariffs was also ordered by two Trump-nominated judges — Amy Coney Barrett and Neil Gorsuch.
Tariff will be imposed under other laws?
This decision of the Supreme Court comes after two lower courts ruled against the Trump administration and canceled the tariffs, declaring them illegal. However, these fees were still in place as long as the Supreme Court was considering the matter. At the same time, Trump officials had already said that if the tariffs are canceled by the Supreme Court, then they will impose new tariffs under other laws.
previous decisions
What have other courts said before on tariffs?
The US Court of International Trade first held that the International Emergency Economic Powers Act (IEEPA) does not delegate unlimited tariff authority to the President because of the Constitution’s express allocation of tariff power to Congress. Now the court said that Trump’s orders related to tariffs are beyond the President’s jurisdiction. At the same time, a federal court in Washington had also declared many tariffs illegal. After this the matter reached the Supreme Court.
Who challenged the tariff?
These tariffs were challenged by the businesses and 12 US states that were affected by these tariffs. Most of these states are ruled by the Democrat Party. This decision of the court will not apply to those tariffs, which were implemented under Section 232 of the Trade Expansion Act of 1962 citing national security concerns. Such as industry-specific tariffs imposed on steel, aluminium, lumber and automobiles.
Will America have to return the money?
According to Reuters report, tariffs worth more than $ 175 billion (about Rs 16 lakh crore) collected so far by the US may have to be returned.
America had imposed 50 percent tariff on India
America had imposed 50 percent tariff on India. Of this, 25 percent was related to oil purchase from Russia. Recently, a trade agreement was signed between India and America, under which 25 percent tariff imposed on oil purchase from Russia was removed, while the remaining 25 percent has been reduced to 18 percent. This trade agreement is going to come into effect from next April.
What is the tariff?
Tariff is a tax that is imposed on goods imported from another country. It is usually levied as a percentage of the price paid by the buyer for the imported product. In the US, the Customs and Border Protection agency collects tariffs through more than 300 checkpoints. It is paid by the company which is importing the product, but the burden of high tariff also falls on the consumers.
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