Brake on Trump’s trade policy! After the court’s decision, tariff collection will stop from midnight

New Delhi: After the important decision of the Supreme Court, some import duties imposed by President Donald Trump will no longer be collected. These were the same tariffs that affected the global supply chain in previous years and created tension in America’s relations with many countries. The court’s decision questioned the legality of these charges and declared them illegal. Collection of fees is being stopped for three days after the court’s decision.

The US Customs and Border Protection Agency issued an official statement saying that the collection of duties imposed under the International Emergency Economic Powers Act (IEEPA) of 1977 will be stopped from 12.01 am local US time (10.30 am Indian time) on Tuesday. The agency has directed importers to deactivate the relevant duty codes from the cargo system.

On which tariffs will the ban apply?

This suspension is limited to charges imposed under IEEPA only. Other tariffs imposed during the Trump administration under Section 232 (national security) and Section 301 (unfair trade practices) will remain in effect for now. The agency also said that further information will be provided to the business community as needed.

New 15 percent global tariff

Interestingly, just hours after the court’s decision, Trump took a new step. Under a separate legal provision, he announced the imposition of a uniform tariff of 15 percent on goods imported from all countries. This new fee has been imposed on the basis of Section 122 of the American Trade Act.

Under this section, a maximum tariff of 15 percent can be imposed, but if it is to continue for more than 150 days, Congress’s approval will be required. No President had used this provision before, so further legal challenges are expected.

Impact on billions of dollars in revenue

Economists believe that the Supreme Court’s decision could have a major impact on the American treasury. It is estimated that more than $175 billion may be at stake, as the now invalidated fees were generating hundreds of millions of dollars in daily income. If the importers have to return the amount, the government may have to face huge financial pressure.

The court’s decision has brought relief to major Asian exporters like China, South Korea, Japan and Taiwan. These countries play an important role in global manufacturing and technology supply chains.