Hours after the US Supreme Court invalidated his global tariff framework, US PresidentDonald Trumpmoved swiftly with a new executive order, imposing a 10% worldwide tariff under Section 122. For India, however, the math is not simple. While the White House says New Delhi will pay 10%, Indian goods currently face an 18% reciprocal tariff under the interim trade deal signed just this month, which puts things under fresh scrutiny.

A White House official, when asked whether India will have to pay 10% tariffs and whether they will replace previous tariffs under the International Emergency Economic Powers Act (IEEPA), told ANI, "Yes, 10 per cent until another authority is invoked."

However, contradictory statements have come in. At the same time, the official advised all trade partners to "abide by their trade deals".

Based on the February 6 US-India agreement, the US applies an 18% reciprocal tariff on specific Indian goods. Clarity is expected on whether Trump's new 10% global tariff under Section 122 is added on top, or if the rate is slashed to a uniform 10% for all nations, irrespective of the trade deals signed.

Trump has also claimed "nothing changes" in the specifics, and the deal with India "remains on".

On the specifics of the deal with India, Trump said, “Nothing changes. They'll be paying tariffs, and we will not be paying tariffs. So deal with India is they pay tariffs. This is a reversal for what it used to be, as you know, India and I think Prime Minister Modi is a great gentleman, a great man, actually, but he was much smarter than the people that he was against in terms of the United States, he was ripping us off. So we made a deal with India."

"It's a fair deal now, and we are not paying tariffs to them, and they are paying tariffs. We did a little flip. The India deal is on…all the deals are on, we're just going to do it (differently)," he added.

Also Read:Why US Supreme Court Struck Down Trump's Sweeping Global Tariffs | EXPLAINED

Trump has signed an executive order for a 10% global tariff under Section 122 of the Trade Act of 1974. This authority allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits.

"Effective immediately, all the national security tariffs under Section 232 and existing Section 301 tariffs remain in place... Today, I will sign an order to impose a 10% global tariff under Section 122 over and above our normal tariffs already being charged," he said.

Source: India Latest News, Breaking News Today, Top News Headlines | Times Now