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India will face a 10 per cent tariff as part of a new global levy imposed by US President Donald Trump after the US Supreme Court restricted his use of emergency powers to impose sweeping import duties.
The move follows a 6-3 ruling by the Supreme Court that the Trump administration exceeded its authority under the International Emergency Economic Powers Act (IEEPA) of 1977 to levy broad-based tariffs. The court held that IEEPA does not explicitly authorise the President to impose duties, a power assigned to Congress, prompting the administration to invoke a different statute.
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A White House official confirmed to news agency ANI that India would be subject to the revised tariff. When asked whether India would have to pay 10 per cent and whether it would replace earlier IEEPA-based tariffs, the official replied: “Yes, 10 per cent until another authority is invoked.”
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Under the new order, Trump invoked Section 122 of the Trade Act of 1974, which permits a temporary import surcharge of up to 15 per cent for 150 days to address balance-of-payments deficits. A White House fact sheet on Friday said the 10 per cent surcharge will take effect on February 24 at 12:01 am.
What the Supreme Court said on IEEPA powers
Joined by Justices Amy Coney Barrett, Neil Gorsuch, and the three liberal justices, Chief Justice John Roberts ruled that IEEPA does not grant the President the authority to levy duties. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented.
The ruling invalidated billions of dollars in “reciprocal” and emergency tariffs and could require refunds of roughly USD 130-USD 175 billion in collected revenue. The Washington Post reported that nearly USD 134 billion had been collected under the contested authority through December 14.
Trump calls verdict ‘terrible’, vows alternatives
Reacting sharply, Trump termed the judgment a “terrible decision” and later described it as “ludicrous,” asserting that other legal avenues would be used.
“Foreign countries that have been ripping us off for years are ecstatic. They are dancing in the streets, but they won’t be dancing for long… Those justices are a disgrace to our nation… The court has been swayed by foreign interests and a political movement that is far smaller than people would ever think,” he said.
“Other alternatives will now be used to replace the ones that the court incorrectly rejected. We have alternatives,” he said, adding that the administration would continue to generate revenue through tariffs.
Trump emphasised that tariffs imposed under Section 232 (national security) and Section 301 (unfair trade practices) remain “in full force and effect,” as they were not affected by the ruling. The administration has also initiated fresh Section 301 investigations into what it described as “unfair trade practices.”
“Effective immediately, all the national security tariffs under Section 232 and existing Section 301 tariffs remain in place… Today, I will sign an order to impose a 10 per cent global tariff under Section 122 over and above our normal tariffs already being charged,” he said.
What it means for India and trade deals
Trump said, “The India deal is on,” signalling that recent bilateral trade arrangements, including the reduction of reciprocal tariffs to 18 per cent, would be maintained through the new legal framework.
According to IANS, countries that had negotiated trade arrangements with Washington, including India, Japan, the European Union and the United Kingdom, will temporarily face the uniform 10 per cent tariff under Section 122. The White House described the shift as temporary and said trade partners are expected to honour existing commitments.
The ruling and the administration’s response are expected to have wide implications for global trade, businesses and consumers. US stock indexes rose after the court’s decision amid expectations of easing inflationary pressures. However, gains were moderated by Trump’s immediate announcement of fresh levies.
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