Trump’s emergency tariffs to stop from today:US may refund ₹16 lakh crore after SC ruling 3 days ago

The US government will stop collecting emergency tariffs imposed by Donald Trump from today, following a ruling by the US Supreme Court three days ago declaring the measures illegal. The US Customs and Border Protection (CBP) said in a statement: The collection of tariffs imposed under the 1977 law, the International Emergency Economic Powers Act (IEEPA), will be stopped from Tuesday night 12:01 AM (10:30 AM Indian Standard Time). The agency has instructed importers that all codes related to these tariffs will be removed from its cargo system. Economists at the Penn Wharton Budget Model estimate that the court’s decision could require the US government to refund more than $175 billion (approximately ₹15.75 trillion) in previously collected revenue. According to Reuters, tariffs imposed under the IEEPA had been generating over $500 million ( ₹4,500 crore) in revenue each day. With the tariffs now revoked, companies affected by the levies are expected to seek refunds. Trump said, ‘If any country plays a game, I will impose higher tariffs’ US President Donald Trump’s rhetoric on tariffs continues. Trump warned on Monday that if any country tries to ‘play a game’ with America in the name of a trade deal, higher tariffs will be imposed on it. On Truth Social, Trump said, ‘Many countries have harmed America in trade for years.’ Trump’s statement comes at a time when a 15% tariff will begin on all countries, including India, from Tuesday. Some countries are also opposing the 15% tariff. Trump had agreed with countries like Britain, Australia, and New Zealand to pay a 10% US baseline tariff through trade deals. Now 15% tariff will have to be paid. These countries say that when the trade deal was agreed upon at 10% tariff, they will not pay more tariff. The Trump administration has not given any clarification on this. Trump said the SC’s ruling has granted him greater powers than before President Trump said on Monday that although global tariffs had been revoked, the decision had, in fact, increased his powers. Writing on his social media platform Truth Social, Trump said the US Supreme Court had inadvertently given him greater authority than before. Trump said he would write ‘Supreme Court’ in lower case for some time, adding that he no longer respected the ruling. He described the decision as foolish and said it would create international divisions. Despite his criticism, Trump argued that the ruling clarified his ability to impose tariffs under other laws. He said the court had legally strengthened the remaining tariffs, allowing them to be enforced more strictly. Trump also said he could take tough action against countries through measures such as licensing, claiming that the court had upheld many other tariffs, the number of which he described as substantial. No information on whether collected tariffs will be refunded This decision is being implemented more than three days after the Supreme Court’s ruling. The agency did not explain why tariffs continued to be collected during these three days. It has also not been clarified whether those from whom money was collected will get it back or not. This order will only apply to tariffs imposed under the IEEPA law. However, tariffs imposed under ‘Section 232’ in the name of National Security and ‘Section 301’ in unfair trade cases will continue and will not be affected by this decision. CBP has stated that it will continue to provide further information to trade-related individuals through official messages. Understand Sections 232 and 301 of US Law Sections 232 and 301 are rules in US trade law through which the government can impose tariffs on goods coming from other countries. Section 232- This is part of the 1962 law. If the US government believes that an influx of goods from a country could pose a threat to national security, the President can impose tariffs on those goods. This means, if imports appear to weaken the military, defense industry, or essential domestic industries, this rule is used. Trump had imposed tariffs on steel and aluminum under the same section during his first term. He stated that excessive imports were weakening the American industry and it was a matter of national security. Section 301- This is part of the 1974 law. If the US feels that a country is trading unfairly with it, such as violating rules, stealing Intellectual Property (IP), or discrimination, it can impose tariffs on that country’s goods. Many tariffs imposed against China were levied under this Section 301. Trump imposed a 15% global tariff on the world On February 20, the US Supreme Court ruled by a 6-3 majority that President Trump had overstepped his authority by using the IEEPA law. The court clearly stated that this law does not allow the President to impose tariffs on imports on such a large scale. As soon as the court’s decision came, Trump announced new global tariffs within hours. He said that from Tuesday, every item coming into America would be subject to a uniform tariff. Initially, it was stated to be 10%, but later it was suddenly increased to 15%. Some officials were also surprised by this sudden change. This new tariff has been imposed under Section 122 of US trade law. Under this rule, the government can impose tariffs up to 15%, but if it is to be continued for more than 150 days, congressional approval will be required. India also falls under the 15% tariff ambit The decision will also affect India. Over the past year, the US has repeatedly changed tariffs on Indian goods. Earlier it was around 26%, then increased to 50%. After that, it was reduced to 18% and now brought down to the 15 % global tariff following the court ruling. The real impact on Indian goods will depend on several factors, including whether the US Congress extends the current 150 day arrangement and when the temporary trade agreement between India and the US is implemented. It will also depend on whether the US government adopts any other legal route in the future. Overall, the situation remains uncertain and further changes are possible. Section 122 is part of the 1974 law Section 122 is part of a US law called the Trade Act of 1974. It allows the US President to impose tariffs immediately if the country faces a sudden trade deficit or an economic emergency. Under this provision, tariffs can be introduced without a lengthy investigation and can remain in force for up to 150 days. During this period, the government reviews the situation and decides whether further action is needed. According to NBC News, imposing a uniform 15 % global tariff would lower tariffs for countries that were previously subject to higher rates. Certain products were exempt, including some agricultural goods such as beef, tomatoes and oranges, as well as critical minerals, medicines, some electronic items and passenger vehicles. The Trump administration said the new tariff would replace earlier measures and that efforts to increase revenue would continue. Nixon imposed a 10% global tariff 55 years ago In 1971, there was a huge imbalance in trade and balance of payments between America and the world. America was continuously importing more and exporting less, which was increasing pressure on the dollar. After this, Nixon imposed a 10% global tariff on countries around the world. It was then felt that if such an economic emergency arose in the future, the President should have the legal authority to deal with such matters. With this objective, the ‘Trade Act 1974’ was passed in 1974. According to a New York Times report, Section 122 has never been used before. Therefore, it is also not clear how courts will interpret it if it is challenged in court.