Trump Signs 10% Global Tariff Order After US Supreme Court Strikes Down Emergency Duties: What It Means for India
Washington, February 20, 2026: US President Donald Trump has signed a fresh executive order imposing a 10% global tariff on imports, shortly after the US Supreme Court struck down his earlier sweeping tariff measures.
While Trump clarified there is “no change” in the ongoing trade deal with India, questions remain about how much India will now pay under the revised tariff structure.
Here’s a clear breakdown of the situation and its impact on India.
US Supreme Court Rejects Emergency Tariffs
In a 6-3 decision, the US Supreme Court ruled that the Trump administration exceeded its authority under the International Emergency Economic Powers Act (IEEPA) of 1977.
The court said the law — traditionally used for national security threats — could not justify the broad tariff measures introduced in February 2025.
The ruling effectively invalidated the reciprocal tariffs imposed under IEEPA.
However, the administration quickly responded with an alternative route.
Trump Announces New 10% Global Tariff Under Trade Act
Following the court’s decision, Trump signed a new executive order using Section 122 of the Trade Act of 1974, which allows the president to impose a temporary import surcharge of up to 15% for 150 days to address balance-of-payments deficits.
The White House confirmed:
- A 10% temporary global tariff
- Effective February 24 at 12:01 AM
- Valid for up to 150 days, unless extended by Congress
Trump described the court ruling as a “terrible decision” but stated that tariffs would continue under alternative legal authorities.
He also confirmed that:
Section 232 tariffs (National Security)
Section 301 tariffs (Unfair Trade Practices)
remain fully in effect.
What Did Trump Say About India?
After the Supreme Court verdict, Trump told reporters at the White House that the US-India trade deal remains intact.
“Nothing changes. They'll be paying tariffs, and we will not be paying tariffs… The India deal is on.”
He described relations with Prime Minister Narendra Modi as “fantastic” and reiterated that trade discussions between the two countries remain active.
However, the structure of the tariff payments has changed.
How Much Will India Pay Now?
Previous Situation (Before Court Ruling)
In 2025:
India faced 50% tariffs (25% reciprocal + 25% Russia-related penalty)
Later reduced to 18% reciprocal tariff after interim trade negotiations
After Supreme Court Ruling
Since reciprocal tariffs were imposed under IEEPA, the court’s decision would technically reduce them to 0%.
After New Executive Order
According to White House officials quoted by CNBC and ANI:
- India will now pay a 10% tariff
- The 10% replaces the earlier 18% rate
- It does not stack on top of the previous rate
- The 10% applies until another legal authority is invoked
- A White House official confirmed:
- “Yes, 10% until another authority is invoked.”
So currently, India is expected to pay 10% tariffs on exports to the United States, under the temporary Section 122 authority.
Which Other Countries Are Affected?
The White House confirmed that all countries with trade agreements with the US will now face the 10% tariff under the new order.
This includes:
- Vietnam (earlier 20%)
- India (18%)
- European Union (15%)
- Japan (15%)
- Switzerland (15%)
- South Korea (15%)
- United Kingdom (remains at 10%)
Sector-specific tariffs on steel and aluminium remain separate and continue under existing statutory authority.
Additionally, the suspension of duty-free “de minimis” treatment for low-value imports continues.
What Happens Next?
The 10% tariff is temporary and capped at 150 days unless Congress approves an extension.
Key uncertainties include:
- Whether Congress will approve a longer-term extension
- Whether new legal authority will be invoked
- How ongoing bilateral trade talks with India evolve
Potential impact on exporters and global supply chains
For now, India’s tariff exposure has effectively been reduced from 18% to 10%, but the broader trade policy direction remains fluid.
Key Takeaway
Despite the Supreme Court striking down Trump’s emergency tariffs, India will not pay zero tariffs. Instead, under a new executive order, India will face a temporary 10% tariff on exports to the US until further notice.
The situation remains dynamic, with legal, political, and economic implications ahead of the US mid-term elections.
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