Synopsis : India will now face a lower 10% temporary import surcharge in the U.S. following a Supreme Court ruling that curbed the President’s authority to impose unilateral tariffs. The move brings short-term relief to exporters even as political sparring erupts over the India–U.S. interim trade deal.
In a major development with global trade implications, the U.S. Supreme Court has rejected President Donald Trump’s authority to impose sweeping unilateral tariffs, dealing a blow to his aggressive protectionist agenda. In the wake of the verdict, President Trump announced a revised global levy structure, under which India will face a reduced 10% tariff, down from the earlier 18%.
According to the proclamation issued on Friday (February 20, 2026), a “temporary import surcharge of 10% ad valorem” will apply on articles imported into the United States for a period of 150 days starting February 24. The revised levy applies across multiple trading partners, reflecting the administration’s recalibration after the top court’s ruling.
No Change in India–U.S. Interim Trade Deal
Addressing questions on the India–U.S. interim trade agreement, President Trump said that there are no changes to its parameters, reiterating that India would continue to pay tariffs while U.S. goods would not face similar charges.
“Nothing changes. They’ll be paying tariffs, and we will not be paying tariffs,” Trump said at a press conference.
In India, the opposition Congress party criticised the arrangement, calling the interim deal an “ordeal” and alleging that it reflects the government’s desperation and surrender in negotiations.
Supreme Court Verdict: A Legal Setback for Trump
The 6–3 ruling by the Supreme Court held that a 1977 law cited by Trump does not authorise the President to impose tariffs at will, effectively invalidating the legal basis he used to justify sudden tariff hikes on individual countries.
The ruling has significant implications for U.S. trade policy, potentially restraining future administrations from using executive power to abruptly alter tariff regimes without congressional approval.
Trump Pushes Back
Reacting angrily to the verdict, Trump accused the court—without providing evidence—of being influenced by “foreign interests.” The outburst was notable as two of the justices who ruled against him were nominated by Trump himself.
What It Means for India
Short-term relief for Indian exporters through a lower 10% levy
Improved visibility for trade flows over the next five months
Continued uncertainty beyond the 150-day window, depending on future negotiations
While the temporary reduction is a positive development, trade experts caution that long-term clarity will depend on whether a comprehensive India–U.S. trade agreement is finalised.
Disclaimer : This article is for informational purposes only and does not constitute legal, tax, or investment advice. Readers should consult appropriate professionals for specific guidance.
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