The United States Supreme Court struck down Donald Trump’s sweeping global tariffs. Within hours, Trump imposed new global tariffs of 10% for 150 days. He said that this step will not have any impact on the India-US interim trade agreement.
In a landmark decision reshaping US trade policy, the United States Supreme Court on Friday struck down former President Donald Trump’s sweeping global tariffs, ruling 6-3 that he had exceeded his authority by using emergency powers to impose import taxes on goods from nearly every country.
Within hours of the decision, Trump announced new 10 percent global tariffs, calling the decision “extremely disappointing” and “terrible”, and criticizing the judges who ruled against him. The new levy will be effective from February 24 and will remain in force for 150 days.
The decision represents a significant blow to Trump’s second-term economic agenda and revives debate over the limits of presidential authority in trade matters. Responding sharply, Trump accused some judges of lacking the courage to act in the national interest and vowed to pursue a “very powerful alternative.”
New tariff under section 122
In response, Trump signed a proclamation invoking Section 122 of the Trade Act of 1974, a rarely used provision that allows the President to impose import surcharges of up to 15 percent for 150 days to address balance of payments concerns. Any extension beyond that period would require congressional approval.
The White House described the 10 percent “temporary import surcharge” as necessary to address “fundamental international payments problems” and rebalance U.S. trade relations.
A fact sheet outlines exemptions for certain critical minerals, natural resources, fertilizers, pharmaceuticals, selected electronics, specific vehicles, aerospace products and some agricultural commodities such as beef and oranges. Canada and Mexico will retain exemptions under the US-Mexico-Canada Agreement.
impact on india
This decision and the subsequent 10 percent global tariff has a direct impact on India. Earlier, Washington and New Delhi had agreed to an interim trade framework under which the US reduced tariffs on Indian goods to 18 percent from the previously announced 50 percent. In return, India agreed to eliminate or reduce tariffs on a wide range of American industrial and agricultural products.
These include dry distillers’ grains, red sorghum for animal feed, tree nuts, fresh and processed fruits, soybean oil, wines and spirits, as well as many industrial goods.
Following the Supreme Court decision, India will now face a new universal 10 per cent tariff instead of the 18 per cent rate mentioned under the interim arrangement.
Speaking at the White House, Trump said the court’s decision will not lead to any changes in the India-US trade deal, which is expected to be signed by the end of March. He praised the Prime Minister Narendra Modi and described the revised arrangement as a “fair deal”.
“Nothing will change. They’ll pay tariffs, and we won’t pay tariffs. It’s the opposite of what it used to beTrump said, this agreement has corrected the imbalance in trade relations.
Rahul Gandhi criticized PM Modi
Political reactions started in India on this development. Leader of Opposition in Lok Sabha Rahul Gandhi Criticized Prime Minister Modi regarding trade talks. In a post on Twitter, Gandhi wrote: “The Prime Minister has compromised. His treachery is now exposed. He cannot negotiate again. He will surrender again.”
As the 150-day window for temporary tariffs begins, the focus now turns to the US Congress and whether lawmakers will move to extend, modify or block the new surcharge regime. Meanwhile, global markets and trading partners are preparing for further instability in US trade policy.
