TRUMP’S COUNTERATTACK
On the other hand, Donald Trump has chosen to go ballistic on justices who, he termed, did not have the “ courage to show what is right for the country’’. Not just that. He declared that he won’t back down on tariffs and vowed to invoke all other available tools to force its trading nations to correct what he perceives as the imbalance in commerce. Even before the ink on the Supreme Court verdict could dry, he invoked Section 122 of the Trade Act of 1974 to impose a 10 per cent tariff on imports from a l l c o u n t r i e s . Soon enough, he hiked it to 15 per cent. That too has changed!
GLOBAL DISQUIET
Now, a tariff of only 10 per cent is sought to be implemented. Section 122 has set a 150-day time limit for the tariff, post which it requires Congressional nod to be extended. The avoidable unbridled belligerence and bullying shown by Donald Trump has indeed thrown the entire international trading system into a total disarray. Not surprisingly, it has already redrawn the geo-politics and global alliances. The way he pooh-poohed at the judiciary for delivering a judgement which he did not like and also the manner in which he launched a public tirade against the Fed chief aren’t right advertisements for the largest democracy in the world where respect for institutional mechanism is an accepted practice. Donald Trump in his second innings as the President of America has virtually pushed global trade into instability of unimaginable proportion in the recent history of world order.
POLICY STABILITY IS THE BEDROCK
A stable policy – be it on trade or investment – is a sine qua non for a smooth flow of commerce and investments among countries. At a time when technological advances are happening at a hectic phase and nations are increasingly interconnected a meaningful stability is fundamental to a peaceful co-existence.
The US Supreme Court verdict is indeed a refreshing message. Even though Trump has warned of imposing tariffs through other available routes, it will also be subjected to legal tests. It would be interesting to see how countries, which were negotiating trade deals with the US before the Supreme Court verdict, react now.
