The United States has said that it will stop collecting global tariffs from Tuesday, four days after the country’s Supreme Court ruled that President Donald Trump had exceeded his authority in imposing the levies.
In a message on its Cargo Systems Messaging Service, the US Customs and Border Protection agency stated that all tariff codes pertaining to the levies will be deactivated.
In a 6:3 verdict on Friday, the Supreme Court said that the 1977 International Emergency Economic Powers Act, which Trump had invoked for the levies, “does not authorise the president to impose tariffs”.
Soon after the ruling, Trump signed a proclamation imposing a temporary 10% levy on articles imported into the US.
On Saturday, the US president said he was increasing global tariffs to 15% with immediate effect.
However, it was unclear as to when the increased tariff rate would take effect, as the original 10% rate announced on Friday was to be enforced on February 24.
The new tariffs are to take effect for a maximum of 150 days, unless the US Congress approves an extension. This, however, has left the status of recently signed trade deals with other countries unclear.
On Sunday, the US Customs and Border Protection agency stated that the halt on collection of tariffs does not affect other levies imposed by Trump.
On Friday, Trump said that with respect to the trade deal with India, “nothing changes” and the levies on New Delhi will continue. “They will be paying tariffs and we will not be paying tariffs,” he told reporters at the White House.
According to the framework for the deal with India, US tariffs on Indian goods were to be reduced to 18% from a combined rate of 50%. The earlier rate of 50% had included a punitive levy of 25% imposed in August over India’s purchase of Russian oil.
In April, Trump imposed “reciprocal” tariffs on dozens of countries, including India, claiming high tariffs the countries imposed on US goods. The levies were eventually reduced once bilateral trade deals had been agreed to, including in the case of India.
After the US Supreme Court’s ruling, India’s commerce ministry stated that the government was studying developments on tariffs and their implications for the country.
You’ve read Scroll.
Now help sustain it
Scroll is funded by readers, not corporate owners. If you believe our work matters, support our newsroom. Become a member today!
We’re not driven by clicks or corporate interests – just honest, independent reporting. Keep us going. Support Scroll today!