More trouble for world as Trump set to take this big decision in July? Know if India will be impacted
US President Donald Trump is preparing to reintroduce his earlier tariff strategy from July, according to US Treasury Secretary Scott Bessent, who said the administration has already found a ‘backdoor’ legal route after earlier setbacks in court.
Tariffs set for comeback in July
Bessent stated that tariffs previously blocked following a Supreme Court ruling could soon be made effective again. He said that although the US Supreme Court had struck down earlier tariff decisions, the administration has now identified alternative legal channels to move forward.
According to him, the tariffs are expected to return from July and may impact several countries, including India, if a trade agreement is not reached before then.
Legal route through section 301
Explaining the approach, Bessent said the administration has begun reviewing global trade practices under Section 301. He added that this assessment process has now been completed, paving the way for tariff reinstatement.
He noted that Section 301 tariff authority has already been tested in court and therefore businesses can begin planning their capital and trade decisions accordingly.
Economic outlook despite global tensions
Despite ongoing geopolitical tensions, including the conflict with Iran, Bessent said the US economy remains strong. He projected that growth could exceed 3% this year.
He also pointed out that core inflation is showing signs of decline even as global oil and food prices remain high due to instability.
Fed accused of misreading inflation data
Bessent also criticised the US Federal Reserve, claiming that it has misinterpreted inflation trends. He argued that core inflation is actually falling and suggested that if the Fed waits for clearer data, it may eventually need to cut interest rates further.
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He referred to recent reports indicating that inflation pressures on consumers are easing, partly because fuel price effects are not fully passing through to households.
Policy push amid economic strategy
The Treasury Secretary said that even amid war-related global uncertainty, the US economic outlook remains stable. He emphasised that tariff reinstatement is part of a broader effort to balance trade and strengthen the American economy.
With the July timeline approaching, markets and trading partners are expected to closely watch Washington’s next move on tariffs and trade enforcement.