Overview of U.S. Tariffs and Supreme Court Decision

U.S. President Donald Trump addressed a press briefing following a Supreme Court ruling that deemed his imposition of tariffs using emergency powers as unlawful. These tariffs were based on Sections 301, 232, and 122. Despite the ruling, Trump expressed intentions to explore alternative methods to maintain tariff levels through indirect means.

Key Sections of U.S. Trade Acts

Section 122 of the Trade Act of 1974

• Allows the President to impose up to 15% tariffs to address U.S. balance-of-payments deficits.
• Tariffs can be applied for a maximum of 150 days unless extended by Congress.
• Requires consultation with Congress for implementation and continuation.
• Trump proposed a global tariff of 10% using Section 122.

Section 301 of the Trade Act of 1974

• Permits tariffs after U.S. Trade Representative identifies "unfair" trade practices by partners.
• Has been previously used against countries including India.
• India had faced a 301 probe due to its digital services tax, resolved when India phased out the tax following OECD’s global tax framework.

Section 232 of the U.S. Trade Expansion Act of 1962

• Targets specific sectors on national security grounds, as determined by the Secretary of Commerce.
• Trump administration previously imposed tariffs on sectors like steel, aluminum, and automobiles.
• Tariffs are sometimes waived for certain companies, offering a limited application.

Impact on U.S.-India Trade

• Section 232 tariffs affected Indian exports in sectors like steel and aluminum.
• Recent U.S.-India trade agreement could alleviate some tariffs on aircraft parts and provide preferential tariffs for automotive parts.
• Potential for negotiated outcomes in pharmaceuticals and ingredients, subject to 232 investigation.