{"id":89342,"date":"2026-02-23T11:17:35","date_gmt":"2026-02-23T05:47:35","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=89342"},"modified":"2026-02-23T11:17:35","modified_gmt":"2026-02-23T05:47:35","slug":"how-the-us-tariffs-15-impact-india-and-global-trade","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/how-the-us-tariffs-15-impact-india-and-global-trade\/","title":{"rendered":"US Tariffs 15%: How the US Tariffs 15% Impact India and Global Trade?"},"content":{"rendered":"<h2><b>US Tariffs 15% Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After the US Supreme Court struck down tariffs imposed by the Trump administration, President Donald Trump invoked a different legal provision \u2014 <\/span><b>Section 122 of the 1974 Trade Act<\/b><span style=\"font-weight: 400;\"> \u2014 to reimpose trade levies.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">He first announced a 10% tariff on all imports, later raising it to 15%, the maximum allowed under this rarely used law. However, the measure is temporary and can remain in force for only about five months unless approved by the US Congress.<\/span><\/li>\n<\/ul>\n<h2><b>Impact of the New 15% US Tariff<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Countries Better Off Under Flat Rate &#8211; <\/b><span style=\"font-weight: 400;\">With the temporary flat 15% tariff, several major economies \u2014 including India, China, Japan, South Korea, ASEAN nations, Brazil, Mexico, and Canada \u2014 now face lower duties compared to the earlier, higher differential tariffs.<\/span><\/li>\n<li aria-level=\"1\"><b>Countries Facing Higher Tariffs &#8211; <\/b><span style=\"font-weight: 400;\">Conversely, countries such as Russia, Australia, the UK, Saudi Arabia, the UAE, Qatar, Argentina, Colombia, and many in North and Central Africa are now subject to higher tariff rates.<\/span><\/li>\n<li aria-level=\"1\"><b>India\u2019s Position &#8211; <\/b><span style=\"font-weight: 400;\">India had been facing cumulative tariffs of up to 50% since August 2025 due to reciprocal tariffs and penalties linked to Russian oil imports.\u00a0<\/span>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">After a recent trade deal framework and removal of the oil penalty, Indian goods are currently taxed at 25%, with expectations of falling to 18%.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>China\u2019s Position &#8211; <\/b><span style=\"font-weight: 400;\">China had been subject to cumulative tariffs of around 45%, including reciprocal and fentanyl-related levies under IEEPA. With IEEPA struck down, a flat 15% tariff could temporarily put India and China on similar footing \u2014 unless new measures are introduced.<\/span><\/li>\n<\/ul>\n<h2><b>Supreme Court Ruling Curtails Trump\u2019s Tariff Powers<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The US Supreme Court\u2019s decision striking down the use of <a href=\"https:\/\/vajiramandravi.com\/current-affairs\/international-emergency-economic-powers-act-ieepa\/\" target=\"_blank\"><strong>International Emergency Economic Powers Act<\/strong><\/a> (IEEPA) has significantly limited President Trump\u2019s ability to impose tariffs unilaterally through executive orders.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Future tariff actions now require detailed justifications from government agencies and face stricter legal constraints.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ruling weakens Trump\u2019s leverage in trade negotiations, as other countries may adopt a tougher stance knowing his tariff powers are curtailed.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Additionally, the administration may have to refund previously collected tariff revenues, further diminishing its bargaining position.<\/span><\/li>\n<\/ul>\n<h2><b>Mounting Legal and Political Challenges for Trump<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>More Court Battles Ahead<\/b><span style=\"font-weight: 400;\"> &#8211; The administration faces additional Supreme Court cases, including efforts to end birthright citizenship and remove a Federal Reserve Board member \u2014 both seen as difficult to win.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Limited Congressional Path<\/b><span style=\"font-weight: 400;\"> &#8211; To restore broad tariff powers, Trump would need explicit Congressional approval. With slim Republican majorities and midterm elections approaching, securing such backing appears unlikely.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Political Risks and Party Divisions<\/b><span style=\"font-weight: 400;\"> &#8211; Tariffs have contributed to inflationary pressures, potentially alienating voters.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Revenue Impact and Alternative Tools<\/b><span style=\"font-weight: 400;\"> &#8211; The scrapping of IEEPA tariffs could halve America\u2019s effective tariff rate. The administration plans to rely on <\/span><b>Section 122<\/b><span style=\"font-weight: 400;\">, <\/span><b>Section 232<\/b><span style=\"font-weight: 400;\"> (national security), and <\/span><b>Section 301<\/b><span style=\"font-weight: 400;\"> (unfair trade practices) to offset losses, though these provisions come with tighter legal checks and procedural requirements.<\/span><\/li>\n<\/ul>\n<h2><b>Shifting Trade Dynamics After IEEPA Ruling<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With IEEPA-based reciprocal tariffs struck down, around <\/span><span style=\"font-weight: 400;\">55% of India\u2019s exports to the US could revert to standard MFN rates<\/span><span style=\"font-weight: 400;\">, easing duty burdens.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, Section 232 tariffs \u2014 50% on steel and aluminium and 25% on certain auto parts \u2014 remain in force, while about 40% of exports such as smartphones, petroleum products, and medicines continue to be exempt.<\/span><\/li>\n<\/ul>\n<h3><b>Trade Leverage Weakens<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Experts argue that the removal of reciprocal tariffs erodes US leverage in ongoing trade negotiations.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ruling signals a shift from executive-driven tariff policy to one constrained by legal and legislative oversight.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amid uncertainty, India has postponed a planned visit by its chief trade negotiator to Washington, allowing both sides time to assess the legal and policy implications before resuming discussions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite the setback, New Delhi anticipates that the US administration may deploy other legal mechanisms to impose tariffs, as trade measures remain central to President Trump\u2019s foreign policy strategy.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/us-tariffs-hike-to-15-where-india-others-stand-10545595\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>US tariffs 15% under Section 122 reshape global trade. US tariffs 15% lower duties for India, China and others after Supreme Court curbs IEEPA powers.<\/p>\n","protected":false},"author":18,"featured_media":89354,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,22,59,5647],"class_list":{"0":"post-89342","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-upsc-current-affairs","10":"tag-upsc-mains-current-affairs","11":"tag-us-tariffs-15","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/89342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=89342"}],"version-history":[{"count":5,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/89342\/revisions"}],"predecessor-version":[{"id":89359,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/89342\/revisions\/89359"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/89354"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=89342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=89342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=89342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}