Trump's 'Liberation Day' tariffs struck down: India's tariff rate down to 10%, how the revised duty would work and more

White House officials clarified on Saturday that India's tariff rate will go down from 18 per cent to 10 per cent after the US Supreme Court struck down President Donald Trump's Liberation Day tariffs on Friday.

The Supreme Court ruled with a 6-3 majority that the Trump administration exceeded its legal authority by using the International Emergency Economic Powers Act (IEEPA) to impose broad-based tariffs without congressional approval. 

Soon after the US Supreme Court's setback to Trump, he announced that a global tariff of 10 per cent would be levied on all countries. After signing the new order, Trump said in a social media post that it was "effective almost immediately."

What happens to India, other signed trade deals?

When asked whether India would have to pay 10 per cent tariffs and whether they will replace the previous reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), a White House official told ANI, "Yes, 10 per cent until another authority is invoked."

After Trump's 'global tariff' announcement, tariffs on the European Union, Japan and South Korea come down from 15 per cent to 10 per cent. As per officials, Vietnam is the big winner here as tariffs have come down from 20 per cent to 10 per cent for them. 

How will the new tariffs be implemented? 

The new levy will take effect almost immediately and will remain in place for almost 5 months under Section 122 of the Trade Act of 1974. Trump told reporters that during these 5 months, his administration would conduct investigations to impose fair tariffs or tariffs on other countries. 

When asked if the duties could extend beyond 5 months, he said, “We have a right to do pretty much what we want to do, but we're going to change it starting effectively. I think it's three days from now.”

While slamming the Supreme Court ruling, Trump said that it restricts tariffs under the IEEPA but does not limit other executive tools. 

“I can destroy the trade, I can destroy the country. I'm even allowed to impose a foreign country-destroying embargo. I can embargo. I can do anything I want, but I can't charge $1 because that's not what it says,” he said. “How ridiculous is that?”

Will refunds be available on tariffs applied to goods from India? 

The US Chamber of Commerce on Friday said that refunds would be available for some levies applied to goods from India and Brazil after the Supreme Court struck down Trump's reciprocal tariffs.

In an FAQ about tariff refunds, the business chamber said that US importers of record who directly paid the tariffs or the person who takes ownership of the goods once they have cleared customs would be eligible for tariff refunds. 

It said that businesses which did not directly pay the tariffs are not eligible for a refund. "Refunds are only available for tariffs applied under the International Economic Emergency Powers Act (IEEPA). This includes tariffs commonly known as “fentanyl,” “trafficking,” “reciprocal,” or “baseline” tariffs, as well as some other tariffs applied to goods from Brazil and India,” it said.

Neil Bradley, Executive Vice President and Chief Policy Officer at the US Chamber of Commerce, said in a statement, “Over the past year, the Chamber has been working with small and midsize businesses around the country that have seen significant cost increases and supply chain disruptions as a result of these tariffs."

He added, “Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country and will help support stronger economic growth this year."