• Source:JND

US President Donald Trump lashed out at the Supreme Court after it struck down his use of a key tariff authority, calling the apex court's verdict "deeply disappointing", while announcing he would move immediately to other statutes including a new "10 per cent global tariff" that he said would keep his tariff programme intact."

The executive order was signed just hours after a full bench of the US Supreme Court ruled, by a 6-3 majority, that the tariffs imposed by Trump's administration under the International Emergency Economic Powers Act of 1977 exceeded his authority.

On Friday evening, Trump issued new executive orders to impose tariffs, which are scheduled to take effect on Tuesday, under Section 122 of the Trade Act of 1974. These tariffs are intended to partially replace those that ranged from 10 per cent to 50 per cent under the now-invalidated IEEPA powers. The President also instructed new investigations under different statutes that might allow him to reinstate the tariffs.

While these new tariffs will affect all countries, including India, certain exemptions have been maintained.

What products are exempt from the new 10 per cent tariff?

Trump’s new executive orders on the 10 per cent tariff retain exemptions for a variety of goods, many of which had already been excluded from previous tariffs.

These include aerospace products, passenger cars, certain light trucks, goods from Mexico and Canada that adhere to the US-Mexico-Canada trade agreement, pharmaceuticals, and specific critical minerals and agricultural products.

According to a fact sheet issued by the White House, some goods will remain exempt to meet the needs of the US economy or to ensure that the tariffs address “fundamental international payments problems” more effectively. Critical minerals, currency metals, bullion, energy, and energy products fall under these exemptions.

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The fact sheet further noted that natural resources and fertilisers, which cannot be grown, mined, or produced domestically or in sufficient quantities to satisfy US demand, will also be excluded from the tariff.

Exempt agricultural products include beef, tomatoes, and oranges, as well as various pharmaceuticals and pharmaceutical ingredients. Certain electronics will also be exempt.

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Passenger vehicles, certain light trucks, medium and heavy-duty vehicles, buses, and some vehicle parts, as well as select aerospace products, will not be subject to the new tariff.

Additionally, books, donations, and accompanying baggage are not affected by the new tariff.


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