After Court Setback, Trump Slaps 15% Global Tariff; India’s Rate Falls to 15% as Trade Talks Enter New Phase

Washington/New Delhi — A day after the US Supreme Court struck down his sweeping tariff policy, President Donald Trump responded with sharp criticism of the ruling and announced a fresh, across-the-board 15% import duty on goods entering the United States.

Calling the court’s decision “ridiculous, poorly written and extraordinarily anti-American,” Trump first imposed a 10% temporary surcharge on all imports, effective February 24. Within 24 hours, he raised that rate to 15%.

The move means India will now face a 15% tariff on its exports to the US — down from 18% earlier — even as the broader trade equation between the two countries remains under negotiation.

What Happened?

The US Supreme Court, in a 6–3 verdict, invalidated Trump’s earlier use of emergency powers to impose so-called “reciprocal tariffs” under the International Emergency Economic Powers Act (IEEPA).

Reacting strongly, Trump said the judgment was disappointing and publicly criticised some of the judges.

Shortly afterward, he announced a new measure invoking Section 122 of the Trade Act of 1974 — a different legal route that allows the President to impose temporary import surcharges to address international payment imbalances.

In a proclamation titled “Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems”, Trump declared that the US would impose a 15% tariff on goods from around the world for 150 days.

In a post on his social media platform Truth Social, he said the administration would use this period to design “new and legally permissible tariffs” as part of his broader economic agenda.

What Does This Mean for India?

India’s effective tariff rate will now stand at 15%, slightly lower than the previously announced 18%.

Earlier in the day, India’s Commerce Ministry issued a statement saying it was closely examining the implications of both the Supreme Court ruling and the new tariff announcement.

“We are studying all these developments for their implications,” the Ministry said, noting that several steps had been announced by the US administration.

While India and the US have been working toward an interim trade agreement for nearly a year, it has not yet been legally signed. The new tariff structure may alter the dynamics of those negotiations.

Trump, however, suggested that the framework of the India-US trade deal remains intact.

“Nothing changes,” he said. “They’ll be paying tariffs, and we will not be paying tariffs.”

He added that the current arrangement marks what he described as a “flip” compared to earlier trade patterns, claiming that the new deal is fairer for the United States.

Some Goods Exempted

Not all imports will be subject to the temporary 15% surcharge.

The White House fact sheet clarified that certain goods critical to the US economy will be exempt, including:

• Critical minerals and certain metals
• Energy and energy products
• Natural resources and fertilizers are not sufficiently available domestically.
• Some agricultural products,s such as beef, tomatoes, and oranges
• Pharmaceuticals and pharmaceutical ingredients
• Certain electronics
• Passenger vehicles, trucks, buses and some vehicle parts
• Certain aerospace products

The administration said these exemptions are designed to protect essential industries and avoid disruption in key supply chains.

Broader Global Impact

Switzerland-based think tank Global Trade Alert noted that removing the earlier IEEPA-based tariffs would have significantly reduced effective tariff rates for many countries.

According to its analysis:

• Chinese exporters’ effective tariff rate would have fallen from 36.8% to 21.2%
• Brazilian exporters from 26.3% to 6.8%
• Indian exporters from 22.3% to 8.2%

Several smaller economies, including Myanmar, Laos, os and Tunisia, would have seen reductions of over 20 percentage points.

With Trump now imposing a uniform 15% surcharge, competitive conditions for exporters to the US shift again, creating a more level but still elevated tariff environment globally.

Trump’s Remarks on India

During a White House news conference, Trump praised Prime Minister Narendra Modi, calling him “a great gentleman” and saying his relationship with India remains strong.

“I think my relationship with India is fantastic,” Trump said, adding that India had reduced oil purchases from Russia at his request as part of broader efforts to address the ongoing conflict in Ukraine.

At the same time, he repeated his long-standing claim that past trade arrangements had disadvantaged the US, saying the new structure ensures America does not pay tariffs while its partners do.

What Happens Next?

The 15% global tariff will remain in effect for 150 days. During this time, the Trump administration plans to draft a revised tariff framework that can withstand legal scrutiny.

For India, the immediate impact is a modest reduction from the earlier 18% rate — but uncertainty remains as both nations continue negotiations on a comprehensive trade agreement.

With global supply chains already under strain and trade tensions resurfacing, the coming months could redefine how countries like India position themselves in the evolving US trade landscape.

For now, exporters, policymakers, experts, and businesses are watching closely — as Washington recalibrates its trade strategy in the shadow of a Supreme Court rebuke.

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