What is the President’s ‘Brahmastra&#8217? Section 122? Tariffs returned without Parliament’s permission, global market shaken

What is Section 122 US Trade Act: The tariff imposed by President Donald Trump has been removed by the US Supreme Court. At the same time, using Section 122, President Trump has imposed a 10 percent tariff on goods imported into America for a period of 150 days. This temporary import duty will be applicable from February 24.

Now a fact sheet has been released by the White House. It states that Trump has invoked ‘Section 122 of the Trade Act 1974’ Has used the power given under. Under this, the President addresses certain ‘fundamental international payments problems’ through surcharges and other special import restrictions. Can address.

Which items will not attract duty?

According to the fact sheet, temporary import duties will not apply to certain goods to more effectively address fundamental international payments problems facing the United States. These include certain critical minerals, metals used in currency and bullion, energy and power products, natural resources and fertilizers, certain agricultural products, pharmaceuticals and pharmaceutical ingredients, certain electronics, passenger vehicles and other products.

Additionally, the President has directed the Office of the U.S. Trade Representative to exercise his authority under Section 301 to investigate certain unfair and discriminatory laws, policies, and practices that burden or restrict U.S. trade.

America is struggling with trade deficit

The statement said that the US is facing fundamental international payments problems (trade deficit). As a result of reduced domestic production, the US has to import most of the goods it consumes, causing US dollars to flow out of our economy and into foreign countries.

Tariffs imposed under Section 122 will automatically expire after 150 days, unless Congress votes to extend them. Although the deadline is clear, trade experts say the President could reimpose these measures by declaring a new balance of payments emergency before they expire.

Also read: ‘Not allies, now friends…’, grand welcome for Brazilian President in Delhi, all eyes on investment

No formal investigation required

According to multiple reports, unlike other trade laws, Tariff under section 122 No formal testing is required prior to deployment, allowing for rapid action.