The United States has imposed a 10 per cent global tariff effective immediately, with India squarely in its sights as part of existing trade agreements.

This move follows a landmark 6-3 Supreme Court ruling that struck down President Donald Trump's use of the International Emergency Economic Powers Act (IEEPA) of 1977 to levy broad import duties. A White House official confirmed to ANI that India must pay the new tariff until further authority replaces it, urging all trade partners to honour their deals.

The Supreme Court, led by Chief Justice John Roberts alongside Justices Neil Gorsuch, Amy Coney Barrett, and the three liberal justices, ruled that IEEPA does not grant the president explicit power to impose duties—a constitutional prerogative of Congress.

This decision invalidated billions in "reciprocal" and emergency tariffs, potentially forcing refunds of USD 130-175 billion collected under the contested measures. Justices Samuel Alito, Clarence Thomas, and Brett Kavanaugh dissented, backing a broader view of presidential emergency powers.

President Trump branded the verdict a "terrible decision" and "ludicrous," claiming it shields foreign nations at America's expense. He argued the court absurdly permits him to sever trade entirely under IEEPA but bars even a single dollar in tariffs. Trump accused the judiciary of foreign influence, stating: "Foreign countries that have been ripping us off for years are ecstatic... but they won't be dancing for long."

In swift response, Trump invoked Section 122 of the Trade Act of 1974, authorising a temporary import surcharge of up to 15 per cent for 150 days to tackle balance-of-payments deficits. He announced an executive order for a 10 per cent global tariff "over and above our normal tariffs already being charged." Crucially, Section 232 national security tariffs and existing Section 301 unfair trade tariffs remain intact, unaffected by the ruling.

Trump affirmed that "the India deal is on," preserving recent bilateral pacts that trimmed reciprocal tariffs to 18 per cent. The White House stressed compliance from partners like India, tying the new levy to ongoing trade commitments. This protectionist pivot aims to counter unfair practices and deficits, with Trump vowing "alternatives will be used" to sustain revenue inflows exceeding hundreds of billions.

Financial repercussions loom large. The invalidated tariffs spanned trillions in trade, yielding nearly USD 134 billion by mid-December, per reports. US stock indexes climbed post-ruling on hopes of easing inflation, though tempered by Trump's tariff pledge. The administration has also initiated fresh Section 301 probes into unfair practices, paving the way for targeted, enduring duties.

For India, the 10 per cent tariff compounds existing frictions in US trade dynamics. As a key partner in defence, technology, and strategic affairs, New Delhi faces added costs on exports amid its push for indigenous manufacturing and diversified markets. The ruling disrupts global supply chains, potentially inflating US consumer prices while prompting retaliatory measures worldwide.

Broader fallout includes heightened uncertainty for businesses, inflation trajectories, and household budgets. Trump's agenda signals unrelenting trade hawkishness, blending legal workarounds with investigations to rebuild tariff walls. As the 150-day window under Section 122 unfolds, trading partners must navigate this volatile landscape, balancing compliance with economic self-interest.

ANI