Trump’s new 15% tariff kicks in today: Why India holds the advantage this time | Explained

US President Donald Trump speaks during a press conference in the Brady Press Briefing Room of the White House in Washington, DC, on February 20, 2026. (Photo by Mandel NGAN / AFP)

The US Supreme Court struck down Trump's emergency tariff powers, but new 15% tariffs were imposed. India postponed trade talks, now benefiting from lower US tariffs and increased leverage in negotiations, as Washington’s immediate tariff power has weakened.

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Global tariff uncertainty has resurfaced after the US Supreme Court struck down US President Donald Trump’s emergency tariff regime. Despite the setback, fresh tariffs on imported goods came into effect on Tuesday, with the White House imposing new duties of 15 percent.

The Trump administration said the tariffs were justified as a step "to deal with the large and serious United States balance-of-payments deficits." The new levies are temporary and will remain in force for 150 days unless extended by the US Congress.

Even as Trump doubled down on his tariff-first trade strategy, developments following the court ruling have unexpectedly tilted the balance in favour of India.

Supreme Court strikes down emergency tariffs

Last Friday, the US Supreme Court delivered a major blow to Trump’s trade policy by striking down his use of emergency powers to impose tariffs at will.

In a 6-3 ruling, the court upheld a lower court decision that Trump had exceeded his authority under the International Emergency Economic Powers Act, or IEEPA. The justices ruled that the 1977 law did not grant the president the power to impose tariffs based on trade deficits.

The ruling was widely seen as a significant setback for Trump, with major implications for global trade and ongoing negotiations with key partners.

Trump reacted angrily to the verdict, criticising the judges who ruled against him.

“I’m ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what’s right for our country,” the US president said.

Trump pushes new tariffs and issues warning

Following the ruling, Trump announced that he would pursue tariffs using other legal authorities. He initially declared a 10 percent global tariff, later raising it to 15 percent. These new duties took effect on Tuesday and are being viewed as a temporary bridge to a more permanent trade framework.

Trump also issued a sharp warning to countries he accused of using the court ruling to renegotiate or delay trade commitments.

“Any country that wants to ‘play games’ with the ridiculous supreme court decision, especially those that have ‘ripped off’ the USA for years, and even decades, will be met with a much higher tariff, and worse, than that which they just recently agreed to. Buyer Beware!” Trump wrote on Truth Social.

He added that while the court blocked tariffs under IEEPA, it affirmed his ability to impose duties under other laws “in a much more powerful and obnoxious way, with legal certainty, than the tariffs as initially used”.

India trade talks deferred, but position strengthens

Although Trump did not name any country, his warning was widely interpreted as being aimed at India and the European Union.

India has deferred a three-day visit by a trade delegation to Washington that was scheduled to begin on Monday. The talks were meant to finalise an interim trade deal agreed upon earlier this month.

A source told Reuters, “The decision to defer the visit was taken after discussions between officials of the two countries. No new date for the visit has been decided.”

The interim framework had proposed reducing US tariffs on some Indian exports from 25 percent to 18 percent, linked to New Delhi’s purchases of Russian oil. India, in turn, had agreed to buy US goods worth $500 billion over five years, including energy, aircraft, precious metals and technology products.

However, following the Supreme Court ruling, US tariffs on Indian goods now stand at 10 percent, lower than the previously agreed 18 percent. This shift is seen as giving India greater negotiating room.

India seen gaining leverage after ruling

Market analysts and economists believe the court decision has weakened Washington’s immediate tariff leverage.

Emkay Global Financial Services said in a note that the ruling was “a positive development for India”, adding that the US had “lost immediate tariff leverage as a means to agree to favourable trade deals globally”.

A Bloomberg report also noted that the Supreme Court ruling gives India more flexibility in negotiations. While New Delhi is not expected to walk away from the trade framework, it can now seek stronger safeguards against sudden legal or executive reversals in the future.

Experts have also highlighted Clause 8 of the Framework for an Interim Agreement, which states, “In the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments.”

This clause gives India scope to recalibrate its commitments in light of the changed tariff structure. As reported by The Indian Express, New Delhi could invoke this provision to argue that America’s commitments now stand modified, reopening room for negotiation.

Government reviewing next steps

India’s Commerce Ministry said it was closely studying the implications of the US court ruling and Trump’s subsequent announcements.

“We have noted the US Supreme Court judgment on tariffs. President Trump has also addressed a press conference in that regard. Some steps have been announced by the US administration. We are studying all these developments for their implications,” the ministry said.

While uncertainty remains over the final shape of US trade policy, India appears to be entering the next round of talks from a position of relative strength. How New Delhi converts this advantage into concrete gains will be closely watched in the coming weeks.