Supreme Court Blocks Trump Tariffs, India Weighs Interim Deal Amid New 10% Surcharge
Updated (2 articles)
Supreme Court Declares Trump’s Global Tariffs Unlawful In a 6‑3 decision authored by Chief Justice John Roberts, the U.S. Supreme Court held President Donald Trump exceeded authority under the International Emergency Economic Powers Act, nullifying worldwide tariffs that targeted the United Kingdom, Japan, the European Union, Malaysia, Indonesia, Vietnam and India [1][2]. The ruling emphasizes judicial limits on executive trade actions and immediately invalidated the previously imposed duties.
Trump Announces 10% Temporary Import Surcharge On February 20, Trump issued a proclamation imposing a 10% ad valorem surcharge on all imports, effective February 24 and lasting 150 days [1][2]. The surcharge layers on top of existing most‑favoured‑nation duties, including the 25% tariff that remains on Indian goods after a partial rollback of earlier 50% penalties [2]. This move is presented as a “temporary import surcharge” to offset revenue losses from the court’s decision.
India’s Commerce Ministry Evaluates Trade Fallout The Indian Ministry of Commerce & Industry announced on February 21 that it is closely monitoring the Supreme Court judgment and the new U.S. surcharge for potential impacts on bilateral trade [1][2]. An Indian delegation is scheduled to meet U.S. officials on February 23 to finalize the first phase of an interim trade pact that already reduced tariffs to 18%, with total India‑U.S. trade valued at $186 billion in FY 2024‑25 [2]. Opposition leaders, including Jairam Ramesh and Rahul Gandhi, have called for pausing the interim agreement, warning of adverse effects on Indian farmers.
Economic Impact Estimates and Market Reaction Economists at the Penn‑Wharton Budget Model estimate up to $175 billion in tariff collections could be refundable, while U.S. stock indices posted modest gains reflecting expectations of lower inflation pressure [1]. International figures such as French President Emmanuel Macron praised the decision as a reminder of judicial checks, and Brazil’s Vice‑President Geraldo Alckmin highlighted the need for stable trade relations [1].
Sources
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1.
The Hindu: U.S. Supreme Court blocks Trump’s global tariffs; India and allies react – Details the 6‑3 ruling, Trump’s 10% surcharge, India’s ministry response, opposition criticism, and global leader commentary, emphasizing the broad economic and political ramifications .
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The Hindu: India’s Commerce Ministry reviews U.S. tariff fallout after Supreme Court ruling – Focuses on the ministry’s monitoring, the specifics of the surcharge atop existing duties, prior U.S. tariff levels, and the upcoming February 23 trade talks aimed at cementing an interim deal that cuts tariffs to 18% .
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Timeline
Aug 2025 – The United States first levies a 25 % reciprocal tariff on Indian goods, then adds another 25 % surcharge for Russian crude, later rolling back the punitive 25 % portion and leaving a 25 % most‑favoured‑nation duty in place, setting the stage for later trade tensions [2].
Feb 2026 (early month) – India and the United States negotiate an interim trade pact that trims tariffs to 18 % in the first phase, covering $186 billion of bilateral trade in FY 2024‑25 and creating expectations of deeper market access [2].
Feb 20, 2026 – The U.S. Supreme Court issues a 6‑3 decision, authored by Chief Justice John Roberts, that blocks President Trump’s global tariffs as exceeding authority under the International Emergency Economic Powers Act, instantly nullifying levies on the UK, Japan, EU, Malaysia, Indonesia, Vietnam and India [1][2].
Feb 20, 2026 – French President Emmanuel Macron says the ruling “reminds us that no one is above the law,” praising the judiciary’s check on executive power [1].
Feb 20, 2026 – Brazil’s Vice‑President Geraldo Alckmin and Swiss industry groups warn that stability in trade relations is essential after the court’s decision [1].
Feb 20, 2026 – Indian opposition leader Jairam Ramesh urges Prime Minister Narendra Modi to pause the interim India‑U.S. trade deal, arguing it could hurt farmers, while Rahul Gandhi accuses Modi of betraying the nation [1].
Feb 20, 2026 – President Donald Trump proclaims a “temporary import surcharge of 10 % ad valorem” on all goods entering the United States, to take effect on Feb 24 and remain for 150 days as a workaround to the court ruling [1][2].
Feb 20, 2026 – Economists at the Penn‑Wharton Budget Model estimate that up to $175 billion in tariff collections could be refundable, and U.S. stock indices rise modestly on expectations of reduced inflation pressure [1].
Feb 21, 2026 – India’s Ministry of Commerce & Industry announces it is reviewing the Supreme Court judgment and Trump’s surcharge for their impact on Indian trade, signaling close monitoring of the evolving policy [2].
Feb 23, 2026 – An Indian delegation meets U.S. counterparts to finalize the first phase of the bilateral agreement that lowered tariffs to 18 %, aiming to cement the interim trade framework despite domestic opposition [2].
Feb 24, 2026 – The 10 % temporary surcharge becomes active, stacking on top of existing MFN duties for Indian products and reshaping import costs for U.S. businesses [2].
July 2026 (approx.) – The 150‑day surcharge is slated to expire, ending the temporary import levy unless further action is taken by the U.S. administration [1][2].