<p>By striking down President Donald Trump’s sweeping global tariffs, the United States Supreme Court has asserted independence of the judiciary. The immediate consequence – the defiant president responded with a uniform 10 per cent tariff, later increased to 15 per cent – is another round of uncertainty for the world. The court held the tariffs illegal because the president did not have the powers to impose them under the 1977 International Emergency Economic Powers Act (IEEPA). Trump, who called the ruling a “disgrace”, has turned to the Trade Act of 1974 to impose the new tariffs; the Act allows him to sustain the tariffs up to 15 per cent, for up to 150 days.</p>.<p>Countries had adopted diverse approaches to cope with disruptions brought in by the new tariffs. While some entered into bilateral agreements with the US, bringing the tariff down from the exorbitant levels prescribed by Trump, others, such as India, are in various stages of negotiations to arrive at a deal. A host of conditions and Trump’s prejudices are also in play in many cases. However, the world was closer to finding a way to navigate the chaos – Trump’s new response has derailed those efforts. The new tariffs are higher than what some countries had to pay, while the revised rate may also prove to be a relief for others. Those who have agreed on tariffs higher than 15% may feel they lost the bargain, but many of them are unlikely to seek a review for fear of Trump’s hostility. Some are weighing their agreements against the president’s displeasure. Those who are still negotiating may play for time, as India has done. The uncertainty draws on the sense that the court ruling does not mark the end of the tariff story. Trump has said that the tariffs will be back through other routes. It has also been claimed that trade-related investigations against countries on grounds such as forced labour, discrimination against US companies, etc. – all possible under the existing laws – may be used to reinstate the high tariffs.</p>.What the robot reveals about India’s education.<p>The complexities do not end there. With the tariffs rendered illegal by the court, potential refunds from the US Treasury are being estimated at about $120 billion, about 0.5 per cent of the nation’s GDP. Some of the companies have already applied for the refund. While Trump has said that the trade deal with India will remain unaffected, India has adopted a wait-and-watch policy. The world will do well to see the current situation as a mere pause, and prepare for more disruptions in the form of refashioned tariffs.</p>
<p>By striking down President Donald Trump’s sweeping global tariffs, the United States Supreme Court has asserted independence of the judiciary. The immediate consequence – the defiant president responded with a uniform 10 per cent tariff, later increased to 15 per cent – is another round of uncertainty for the world. The court held the tariffs illegal because the president did not have the powers to impose them under the 1977 International Emergency Economic Powers Act (IEEPA). Trump, who called the ruling a “disgrace”, has turned to the Trade Act of 1974 to impose the new tariffs; the Act allows him to sustain the tariffs up to 15 per cent, for up to 150 days.</p>.<p>Countries had adopted diverse approaches to cope with disruptions brought in by the new tariffs. While some entered into bilateral agreements with the US, bringing the tariff down from the exorbitant levels prescribed by Trump, others, such as India, are in various stages of negotiations to arrive at a deal. A host of conditions and Trump’s prejudices are also in play in many cases. However, the world was closer to finding a way to navigate the chaos – Trump’s new response has derailed those efforts. The new tariffs are higher than what some countries had to pay, while the revised rate may also prove to be a relief for others. Those who have agreed on tariffs higher than 15% may feel they lost the bargain, but many of them are unlikely to seek a review for fear of Trump’s hostility. Some are weighing their agreements against the president’s displeasure. Those who are still negotiating may play for time, as India has done. The uncertainty draws on the sense that the court ruling does not mark the end of the tariff story. Trump has said that the tariffs will be back through other routes. It has also been claimed that trade-related investigations against countries on grounds such as forced labour, discrimination against US companies, etc. – all possible under the existing laws – may be used to reinstate the high tariffs.</p>.What the robot reveals about India’s education.<p>The complexities do not end there. With the tariffs rendered illegal by the court, potential refunds from the US Treasury are being estimated at about $120 billion, about 0.5 per cent of the nation’s GDP. Some of the companies have already applied for the refund. While Trump has said that the trade deal with India will remain unaffected, India has adopted a wait-and-watch policy. The world will do well to see the current situation as a mere pause, and prepare for more disruptions in the form of refashioned tariffs.</p>
