'Exceeded authority': US SC strikes down Trump's global tariffs

The justices didn’t address the extent to which importers are entitled to refunds, leaving it to a lower court to sort out those issues.

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If fully allowed, refunds could total as much as $170 billion — more than half the total revenue Trump's tariffs have brought in.

According to GTRI report, the decision effectively renders recent trade deals initiated or concluded by the US with the UK, Japan, the EU, Malaysia, Indonesia, Vietnam and India one-sided and useless. Partner countries may now find reasons to dump these deals.

As a first step, the US removed the 25 per cent punitive tariffs imposed on India ‘in recognition of India’s commitment to stop purchasing Russian Federation oil’. The tariff is expected to reduce further this month, from the existing 25 per cent to 18 per cent. Both sides aim to sign the deal by March.

The removal of reciprocal tariffs will free about 55 per cent of India’s exports to the US from the 18 per cent duty, leaving them subject only to standard most-favoured nation (MEN) tariffs as per global trade rules.