New Delhi/Washington: After a major decision of the Supreme Court, US President Donald Trump has toughened his stance instead of accepting defeat. Yesterday the Supreme Court declared the emergency tariffs imposed by Trump illegal. The court said that the President has misused his powers. This decision brought great relief to those companies which were paying billions of dollars of tax. But Trump immediately hit back by increasing the new global tariff by 10%.
decided to do 15% Have done. Trump has made it clear that he will not back down from his trade policy. He said that he will use other legal powers like ‘Section 122’. This stubborn attitude of the President is indicating that the tension between America and its trading partners will increase further in the coming days. After this decision, the biggest question has now arisen regarding refund. Companies are demanding their billions of dollars back, but the Trump administration is preparing for a long legal battle.
1. What is Section 122 and why is Trump weaponizing it?
After the setback of the Supreme Court, Trump has now repealed the ‘Trade Act 1974’. section 122 Have resorted to. This law gives the President the power to impose a temporary tariff of up to 15% to prevent serious trade deficit. However, it has a major limitation that it can remain effective only for 150 days. After this the President will have to take approval from the Parliament i.e. Congress.
Trump’s post on Truth Social.
Trump believes that this will give him back the power that the court has taken away from him. He said in the press conference
on the judges Also targeted and called it a bad decision for the country. Experts say that Trump is using this law because it does not require a long process of investigation. He wants to maintain his ‘America First’ policy by implementing it immediately.
2. Why did the Governor of Illinois give Trump a bill of $ 8.7 billion?
Now politics has also become heated in this whole controversy. Illinois Governor JB Pritzker has sent a formal invoice or bill to Trump. In this he has demanded a refund of 8.68 billion dollars from Trump. The governor argues that due to Trump’s illegal tariffs, every family in his state has suffered a loss of about $1700. Calling it ‘past due’, he wrote on social media, ‘cut the cheque’.
- However, legally the matter is not so straightforward. The tariffs are paid by the companies, not the general public. Companies pass this burden on customers, which increases inflation. In such a situation, even if a refund is given, it will be given to the companies and not directly to the common people. Economists believe that companies like Walmart or Costco will not return old money to customers.
3. Can the refund battle drag on for the next 5 years?
What Trump said on the issue of refund made a statement Yes, he has given sleepless nights to the business world. Trump said, ‘I think this will be litigated for the next two years or maybe five years’. This means that companies that paid billions of dollars in taxes last year will have to go to court to get their money back. The Trump administration had earlier promised that if the court’s decision went against it, the money would be returned.
Now the administration seems to be going back on its own promise. Thousands of companies have already filed a case against the government. Now these cases will be heard in the ‘Court of International Trade’. This situation is worst for small businessmen, because they do not have the funds to fight a long legal battle.
4. What will be the impact of this decision on India and global market?
This news is mixed for India. On one hand, due to the decision of the Supreme Court, some old tariffs imposed on India have become illegal. But Trump’s new 10-15% global tariff has again created uncertainty. India’s Commerce Ministry is keeping a close eye on this entire incident. the ministry Said That he is analyzing the court’s decision and Trump’s statements.
‘Studying the situation’: Central government’s first response after US Supreme Court cancels Trump’s tariffs. (File photo)
5. Will the global market be ruined?
Trump has hinted that amid increasing tension with Iran, he may also take military action to put pressure on oil and other things. If this happens, the global supply chain will completely collapse. The coming 150 days are going to be very challenging for Indian exporters, because Trump’s new policy can be implemented at any time.
