Trump Implements New 10% Global Tariff After Supreme Court Setback
In a swift response to a legal defeat, US President Donald Trump has imposed a fresh 10% tariff on imports from all countries, including India. This move came just hours after the US Supreme Court struck down a key legal basis for several of his sweeping global tariffs, shifting the foundation of his trade policy without ending it.
Supreme Court Ruling Invalidates Emergency Tariffs
In a 6–3 ruling, the Supreme Court held that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose broad tariffs. This decision invalidated duties imposed under emergency powers, affecting a major portion of Trump’s "reciprocal tariffs," which had significantly raised import duties worldwide since April 2025.
Trump Pivots to Trade Act of 1974
Undeterred, Trump quickly invoked Section 122 of the Trade Act of 1974, signing an executive order to impose a 10% global tariff "effective immediately." This action ensures tariffs remain central to his economic strategy, while sector-specific tariffs and other trade levies stay in place. The ruling marks a legal reset in a tariff campaign that reshaped global trade flows, including sharply raising and later reducing duties on Indian exports.
Timeline of Trump's Tariff Campaign
The tariff saga began in early 2025 and evolved through several key phases:
- February 2025 — First tariffs on major trading partners, including Canada, Mexico, and China, with rates up to 25%, citing national security and drug trafficking concerns.
- April 2, 2025 — 'Liberation Day' tariffs announced, with a 10% baseline tariff on imports from nearly all countries and higher "reciprocal tariffs" up to 50%. India faced about 25% tariffs on exports like textiles, engineering goods, and jewellery.
- April 2025 — Partial pause amid market volatility, with the 10% baseline tariff remaining as India initiated formal talks with US officials.
- May 2025 — Legal challenges began, creating uncertainty over tariff validity, though a federal appeals court temporarily allowed tariffs to continue.
- June 2025 — Sectoral tariffs escalated, with steel and aluminium duties increased to as high as 50%, and new tariffs on imported cars and auto parts.
- July–August 2025 — Tariffs widened to 69 trading partners, with India facing total duties up to 50%, including punitive levies linked to Russian oil purchases, affecting export competitiveness.
- Late 2025 — Negotiations led to tariff adjustments, with global supply chains shifting to adapt.
- February 2026 — India-US trade deal lowered tariffs on Indian exports to about 18%, restoring some competitiveness after peak levels of up to 50%.
- February 2026 — Supreme Court struck down emergency tariffs, invalidating a core portion of Trump’s framework.
- Immediate Response — New 10% global tariff imposed under Section 122 of the Trade Act, with the White House stating it will remain until another legal authority is invoked.
What Happens Next in Global Trade
The Supreme Court’s ruling blocks Trump from using emergency powers under IEEPA for sweeping tariffs, but sector-specific tariffs and other trade measures remain in force. Trump confirmed that the India-US trade deal is unchanged, and Indian exports will continue to face tariffs under the revised framework. The administration has indicated it will use alternative legal provisions to sustain tariffs, ensuring they stay a central component of US trade policy despite the court setback.
