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The US administration has imposed a 10 per cent ad valorem import duty on articles imported into the United States, after the Supreme Court struck down the reciprocal tariffs imposed by them under the IEEPA, terming them as illegal.
The temporary 10 per cent import duty will take effect February 24 at 12:01 a.m. eastern standard time. Some goods will however not be subject to the temporary import duty because of the needs of the US economy or in order to ensure the duty more effectively addresses the fundamental international payments problems facing the United States. Today, President Donald Trump signed a Proclamation imposing a temporary import duty to address fundamental international payments problems and continue the Administration's work to rebalance its trade relationships to benefit American workers, farmers, and manufacturers. President Trump is invoking his authority under section 122 of the Trade Act of 1974, which empowers the President to address certain fundamental international payment problems through surcharges and other special import restrictions. Section 122 authorises the US president to impose temporary tariffs of up to 15% for a maximum of 150 days to address what the law describes as "large and serious" US balance-of-payments deficits - situations where imports significantly exceed exports. Tariffs imposed under Section 122 automatically expire after 150 days unless Congress votes to extend them. While the time limit is explicit, trade experts note that a president could allow the measures to lapse and potentially reintroduce them by declaring a fresh balance-of-payments emergency. The Trump Administration said it is committed to continue implementing the President's trade policy, which was at the core of his campaign and agend. USTR said in a statement. "For many months, the Trump Administration has cautioned foreign trading partners and the business community that if the Supreme Court were to limit the President's authority to impose tariffs under IEEPA, alternative tools would be implemented to address many of the issues at the heart of the President's reciprocal tariff program." (ANI)
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