US Supreme Court Deals Blow to Trump's Trade Tariffs

The U.S. Supreme Court struck down most of President Trump's expansive tariff measures, marking a significant setback for his trade policy. The court ruled he lacked authority under the 1977 International Emergency Economic Powers Act. This decision could impact global trade and U.S. household finances significantly.

In a significant development, the U.S. Supreme Court has overturned most of President Donald Trump's extensive tariff measures, questioning his authority under the 1977 International Emergency Economic Powers Act (IEEPA). The ruling, reported by The Washington Post, highlights a judicial rebuke of Trump's approach to trade policy, affecting goods from nearly all U.S. trading partners.

This decision may drastically alter the landscape of global trade, influencing businesses, consumers, and economic indicators such as inflation and household finances. It marks a departure from a series of recent favorable Supreme Court rulings for Trump. Previously, the court allowed various administration policies to proceed amid ongoing legal challenges.

The financial repercussions are notable, given that the tariffs encompassed trillions of dollars in trade. The U.S. government had already amassed nearly $134 billion from these levies. According to the Tax Foundation, Trump's trade strategies will cost American households around $1,100 each by 2025.

This judgment occurs shortly after the U.S. and India agreed on a framework for an Interim Trade Agreement. This framework, part of broader U.S.-India Bilateral Trade Agreement (BTA) talks initiated by Trump and India's Prime Minister Modi, aims for sustained market access and robust supply chains.

A joint statement hailed the Interim Agreement as a historic advancement in U.S.-India relations, emphasizing balanced trade. India plans to significantly lower tariffs on American industrial and agricultural products. In turn, the U.S. will apply an 18% reciprocal tariff on Indian goods, with potential future adjustments contingent upon the agreement's finalization.

(With inputs from agencies.)