Trump raises tariffs, Pg4

Key Highlights:

• The US, under President Trump, is imposing a 15% import surcharge on goods globally, effective February 24.
• The initial surcharge was 10%, but Trump increased it, citing authority under Section 122 of the Trade Act of 1974.
• Certain goods are exempt from the surcharge, including critical minerals, certain agricultural products, pharmaceuticals, and vehicles.
• The US Supreme Court invalidated Trump’s imposition of reciprocal tariffs.

Detailed Insights:

• Trump stated the tariff increase aims to address countries "ripping off" the US and to "Make America Great Again".
• Section 122 of the Trade Act of 1974 empowers the President to address international payment problems through import restrictions.
• The India-US trade deal, nearly a year in the making, faces changing dynamics after the US Supreme Court ruling.
• While the US had decided to lower tariffs on India to 18%, it will now come down to 15%.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when they are moved across a political boundary.
• Trade Act of 1974: US law authorizing the President to negotiate trade agreements with foreign countries.
• Ad valorem: A tariff calculated as a percentage of the value of goods.