Is India in Donald Trump's Crosshairs? Understand the Implications of the US President's 'Higher Tariff' Threat
US President Donald Trump is threatening countries with higher tariffs following a Supreme Court decision that weakened his tariff authority and negotiating power.
US President Donald Trump has recently expressed frustration and tension in light of a Supreme Court ruling that curtailed his authority to impose tariffs. This ruling not only diminishes Trump's ability to levy tariffs but also impacts his capacity to negotiate trade deals with other nations. In response, Trump has warned countries that might exploit this court decision for their benefit, suggesting they could face increased tariffs as a consequence.
Although Trump did not specify any countries, his comments coincided with the delay of a planned visit by an Indian delegation aimed at finalizing a trade agreement. This timing is significant as Trump has been using tariffs as a bargaining chip in trade negotiations worldwide. With his power to impose tariffs now diminished, there are concerns that countries may reconsider agreements made under the pressure of tariffs,
In the meantime, Trump has moved quickly to declare a global 10% import duty, which he later increased to 15%, implying a looming trade strategy amidst the uncertainties of his negotiating power. The implications of these developments not only affect the US-India trade relationship but also alter the dynamics of international trade agreements at large, causing global partners to navigate an increasingly volatile tariff environment.