US President Donald Trump faces a major setback as the Supreme Court struck down his global tariffs under IEEPA, prompting immediate cuts to India’s rate to 10% effective February 24.
Supreme Court Ruling Impact
In a 6-3 decision, the court ruled Trump exceeded authority using the 1977 International Emergency Economic Powers Act for broad import duties without Congress approval, nullifying $129B in revenue-generating tariffs.
Trump’s Swift Counter-Move
Trump signed an executive order imposing a flat 10% tariff on all countries under Section 122 of the Trade Act of 1974 for balance-of-payments deficits, effective almost immediately and lasting up to 150 days. He affirmed India’s recent deal (previously 18%) now aligns at 10%, stating “nothing changes” on commitments like curbing Russian oil imports.
India-US Trade Ramifications
India gains temporary relief as prior 25% punitive tariffs (tied to Russian oil) drop, boosting exports amid ongoing framework talks. Refunds for invalidated duties face years of litigation; new levies risk challenges but bypass IEEPA limits.
