American Court Ruling on Trump Tariffs Brings Challenges for US, Relief for India

International News:A US appellate court has declared President Donald Trump's tariff policy illegal. India is expected to get a big relief after this decision. If the Supreme Court also upholds this decision, then the 25 percent reciprocal tariff imposed on India will be removed.

Confusion still on Russian oil

However, it is not yet clear whether the court's decision will also apply to the 25 percent 'punitive tariff' imposed on the purchase of Russian oil. US Homeland Security Secretary Kristi Noem had said that the duty was imposed on oil coming from Russia because it is a matter related to America's security.

America may suffer losses

If the tariffs have to be removed, America may have to bear heavy losses. The Trump administration says that in this situation, billions of dollars collected so far will have to be returned. US Commerce Minister Scott Besant had said that in August itself, $300 billion was earned from tariffs, and it was expected to reach $500 billion next month.

Impact on Trump's policies

Experts believe that the court's decision may weaken Trump's future strategy. The trade agreements that are currently running will not end immediately, but it will become difficult to impose new tariffs in the future. This may also give foreign governments an opportunity to put pressure on America. They can demand changes in the terms or start new negotiations.

Alternative ways

Although Trump has other laws to impose import duties, his power is limited. For example, the Trade Act of 1974 allows the President to impose a 15 percent tariff for just 150 days, and that too on the countries that the USA leads to a big trade deficit.

Apart from this, tariffs can also be imposed under Section 232 of the Trade Expansion Act of 1962. This law was previously used to impose duties on steel, aluminum, and vehicles. But the new decision of the court shows that the president cannot use this power arbitrarily.

Hope of relief for India

If this decision remains intact in the Supreme Court, then the 25 percent tariff imposed on India will be abolished. This will provide direct relief to Indian businessmen and will increase the possibility of better trade relations between the two countries.