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Supreme Court's big blow to Trump's economic plans: Tariffs cancelled and refunds likely, India-China benefit
The US Supreme Court has dealt a big blow by declaring US President Donald Trump's 'reciprocal tariff' policy illegal. This decision has thrown Trump's entire economic math into disarray, and has given great relief to countries like India, China, Canada, Brazil and Mexico. The cancellation of these tariffs by the court will significantly reduce import duties on these countries.
According to White House officials, after the Supreme Court's decision, the 18% tariff imposed on India will now be reduced to 10%. This tariff imposed under the International Emergency Economic Powers Act (IEEPA) will now be replaced by a new tariff under Section 122. This decision will reduce tariffs on the European Union, Japan and South Korea from 15% to 10%, while tariffs on Vietnam from 20% to 10%.
Trump had aimed to collect billions of dollars in revenue over the next decade through these tariffs. In 2025 alone, this generated $200 billion in revenue. However, now that these tariffs have been repealed, the issue of 'refunds' has arisen.
These refunds will mainly benefit American importers who have paid tariffs directly or who have taken ownership of the goods after paying customs duties. Businesses that have not paid direct duties will not get a refund, the American Chamber of Commerce has clarified. This decision will provide financial support to about 2 lakh small business importers.
The US Supreme Court has dealt a big blow by declaring US President Donald Trump's 'reciprocal tariff' policy illegal. This decision has thrown Trump's entire economic math into disarray, and has given great relief to countries like India, China, Canada, Brazil and Mexico. The cancellation of these tariffs by the court will significantly reduce import duties on these countries.
According to White House officials, after the Supreme Court's decision, the 18% tariff imposed on India will now be reduced to 10%. This tariff imposed under the International Emergency Economic Powers Act (IEEPA) will now be replaced by a new tariff under Section 122. This decision will reduce tariffs on the European Union, Japan and South Korea from 15% to 10%, while tariffs on Vietnam from 20% to 10%.
Trump had aimed to collect billions of dollars in revenue over the next decade through these tariffs. In 2025 alone, this generated $200 billion in revenue. However, now that these tariffs have been repealed, the issue of 'refunds' has arisen.
These refunds will mainly benefit American importers who have paid tariffs directly or who have taken ownership of the goods after paying customs duties. Businesses that have not paid direct duties will not get a refund, the American Chamber of Commerce has clarified. This decision will provide financial support to about 2 lakh small business importers.
According to White House officials, after the Supreme Court's decision, the 18% tariff imposed on India will now be reduced to 10%. This tariff imposed under the International Emergency Economic Powers Act (IEEPA) will now be replaced by a new tariff under Section 122. This decision will reduce tariffs on the European Union, Japan and South Korea from 15% to 10%, while tariffs on Vietnam from 20% to 10%.
Trump had aimed to collect billions of dollars in revenue over the next decade through these tariffs. In 2025 alone, this generated $200 billion in revenue. However, now that these tariffs have been repealed, the issue of 'refunds' has arisen.
These refunds will mainly benefit American importers who have paid tariffs directly or who have taken ownership of the goods after paying customs duties. Businesses that have not paid direct duties will not get a refund, the American Chamber of Commerce has clarified. This decision will provide financial support to about 2 lakh small business importers.
