Trump Imposes 15% Tariffs Despite Supreme Court Verdict | Vantage with Palki Sharma | N18G

[music] [music] When the Supreme Court talks, you listen. That's how most democracies

listen. That's how most democracies work. It doesn't matter if you're the

work. It doesn't matter if you're the most popular president in history. It

doesn't matter if you have a brute majority in parliament. When the top court says something, you listen.

Well, not Donald Trump. Last Friday, the US Supreme Court struck down his global tariffs. They found that Trump had

tariffs. They found that Trump had exceeded his authority as president. And

frankly, it was a a godscent for the US president. His tariffs were already

president. His tariffs were already unpopular among the people. They were

raising prices. They were dampening growth. So, a wise politician would have

growth. So, a wise politician would have cashed in. Basically, they would have

cashed in. Basically, they would have used this verdict to roll back the tariffs. Again, not Donald Trump. He

tariffs. Again, not Donald Trump. He

attacked the court for its decision and he imposed a new tariff using a different law.

>> The Supreme Court's ruling on tariffs is deeply disappointing and I'm ashamed of certain members of the court, absolutely ashamed for not

having the courage to do what's right for our country. Foreign countries that have been ripping us off for years are ecstatic. They're so happy

ecstatic. They're so happy and they're dancing in the streets, but they won't be dancing for long. That I

can assure you. I know the people that brought the lawsuit and you know they're sleeves bags, major slee bags, but I know them and they're foreign country

centric. Today I will sign an order to

centric. Today I will sign an order to impose a 10% global tariff under section 122 over and above our normal tariffs

already being charged. And we're also initiating several section 301 and other investigations to protect our country

from unfair trading practices of other countries and companies.

>> It started off at 10% but within hours Trump raised it to 15%. This time he's using another law from the 1970s, the 1974 Trade Act. This act allows the US

president to impose sweeping tariffs.

But there are conditions. For starters,

the rate cannot be over 15%, plus they only last for 150 days. The tariffs last for 150 days. After that, Trump will have to get approval from the US

Congress. If not, the tariffs will

Congress. If not, the tariffs will automatically repeal.

Though Trump says he does not need that.

Look at his latest social media post.

I'm quoting.

I do not have to go back to Congress to get approval of tariffs. It has already been gotten in many forms a long time ago. They're also just reaffirmed. They

ago. They're also just reaffirmed. They

were also just reaffirmed by the ridiculous and poorly crafted Supreme Court decision.

Now, it's not clear what Donald Trump is trying to say, but as things stand, this is a temporary measure. The US Congress will not support a 15% global tariff.

Meaning the White House will need another solution and they will need it fast. In fact, Trump was absolutely

fast. In fact, Trump was absolutely livid on Friday. Even by his standards, he blew a fuse. The president called the US judges fools and lap dogs. He called

them an embarrassment to their families.

And today, these attacks continued.

Trump unleashed a new level of pettiness today. He says he won't use upper case

today. He says he won't use upper case for the Supreme Court anymore. Listen to

this. I'm quoting the Supreme Court. I

will be using lowerase letters for a while based on a complete lack of respect. Accidentally and unwittingly

respect. Accidentally and unwittingly gave me as president of the United States far more powers and strength than I had prior to their ridiculous, dumb, and very internationally divisive

ruling.

Like I said, a new level of pettiness.

But what exactly is Trump talking about here? How does this verdict accidentally

here? How does this verdict accidentally empower him? And if it does, why is

empower him? And if it does, why is Trump so angry about it? Why isn't he celebrating the verdict? Because what

he's saying is not true. The verdict is a major setback to the White House. And

as always, Trump is just trying to spin it. The question is, who does this

it. The question is, who does this actually benefit? Who does the verdict

actually benefit? Who does the verdict benefit? Some countries did negotiate

benefit? Some countries did negotiate rates lower than 15%. Countries like the UK and Australia, they secured 10% tariffs from the White House. For them,

this verdict is a setback.

But for most of Asia, this is a better equation. India, for instance, had

equation. India, for instance, had negotiated 18% tariffs. China was facing 32% tariffs and most of Southeast Asia is at around 20%. So for these

countries, there is a reduction in tariffs.

Having said that, here's a bigger question. What happens to the trade

question. What happens to the trade deals? Well, that depends on which

deals? Well, that depends on which country you're talking about. Western

countries are not too happy about this change. The European Union is set to

change. The European Union is set to stop the ratification of its trade deal.

They want some clarity first. You see,

the EU had secured a 15% tariff rate from the White House. They' also

obtained zero tariffs on some crucial sectors. Now, that advantage of zero

sectors. Now, that advantage of zero tariffs is gone, which is why Brussels is putting the ratification on hold.

They say a deal is a deal. You cannot

raise tariffs after sealing a deal.

Meanwhile, in Asia, the thinking must be quite the opposite. Their trade deals with Donald Trump are already unpopular at home, and they will see this as a chance to renegotiate, to basically seek

better terms. China, for example, would be thrilled.

They are calling for a review of the trade equation.

>> China urges the United States to cancel its unilateral tariff measures on its trading partners.

There are no winners in a trade war and that protectionism leads nowhere.

>> It's easy for American rivals like China, but for American partners, it's a bit more complicated. Technically, you

can now play hard ball with Trump. The

US Supreme Court has given you the perfect leverage. But if you do so, you

perfect leverage. But if you do so, you will antagonize the US president. He can

still use other laws to hurt your exports. He can also hit you elsewhere

exports. He can also hit you elsewhere like on defense or semiconductors which is why American allies will be wary.

Yes, they will take time to re-evaluate their options but walking away from the deals well that will be tough. Just

consider the example of Japan. Japan has

agreed to invest $550 billion in the US economy and that pledge is a crucial part of the US Japan trade deal.

The first package worth around $36 billion was announced last week. And

despite the Supreme Court verdict, Tokyo says it will go ahead. It will still invest the first package of $36 billion into the US economy. And that's the

expectation from Washington as well.

Trump's trade envoy says they will not cancel existing agreements. Those

pledges and tariffs will continue.

The problem is that's a direct clash with the Supreme Court verdict, the American Supreme Court's verdict. The US

will stop collecting the reciprocal tariffs from tomorrow and on the same day it will start imposing the new tariffs.

These two tariff regimes are very different from each other. For instance,

Trump's old regime promises 10% tariffs to Australia, but the new regime imposes 15% tariffs. So why would the Australian

15% tariffs. So why would the Australian government simply accept this change?

That's the first looming flash point.

The second is the issue of refunds.

American importers paid the tariffs imposed by Donald Trump. They paid it and then they transferred the burden to American customers. We're talking around

American customers. We're talking around $134 billion. That's the extra payment.

$134 billion. That's the extra payment.

Technically, this money must be refunded to those importers. The US Supreme Court did not weigh in on that. This issue

will be decided by lower courts. But

even if they order a refund, American citizens won't get a penny and they are the ones who bore the brunt of the higher tariffs, yet not a single dollar will go to the American

customers. Only the importers will get

customers. Only the importers will get that money. It's one of the reasons why

that money. It's one of the reasons why businesses are happy.

But what about the markets? How are

investors reacting to this news? Well,

there's no extraordinary movement. The

S&P 500 is around 0.4% down. The German

DAX is also down by half a percent and the British Footsie is just 0.2% up.

And what explains this lukewarm response? Well, it's the uncertainty.

response? Well, it's the uncertainty.

The American Supreme Court's verdict does not mark the end of Trump's tariff war. In fact, he's doubling down on it.

war. In fact, he's doubling down on it.

This raises the prospect of more temporary measures, more on andoff tariffs, and maybe a looming institutional showdown in Washington.

And that is why the markets are wary.

The tariff verdict may have weakened Trump's hand, but it has not weakened his resolve.

>> Power doesn't end quietly.

Some deaths are not accidents. They are

messages. A gunshot,

a crowd, a country frozen, the killer disappears.

The questions don't. This is not just about who died. It's about what followed. Governments fell, armies

followed. Governments fell, armies moved, history rewrote itself. Five

leaders, five moments, one pattern, the assassination.