‘India studying implications of U.S. tariff moves’

22 FEBRUARY 2026

Tariff under International Emergency Economic Powers Act

The U.S. Supreme Court struck down the reciprocal tariffs imposed by Donald Trump on several countries, including India.
The Court ruled on February 20, 2026 that Mr. Trump had exceeded his authority by using the International Emergency Economic Powers Act to impose these tariffs.
As a result, the reciprocal country-specific tariffs were declared invalid.
Trade analysts believe the ruling could prompt countries to re-examine their trade agreements with the U.S.

New Tariff under Section 122 of the Trade Act, 1974

Soon after the ruling, Mr. Trump announced a temporary 150-day 10% baseline tariff on all imports, effective from February 24, 2026.
This tariff was imposed under Section 122 of the Trade Act of 1974.
Section 122 allows the President to address international payment problems through special import restrictions and surcharges.
In a post on Truth Social, Mr. Trump stated that the 10% tariff would be increased to a “fully allowed, and legally tested” 15% level, effective immediately.

Tariffs under Section 232 of Trade Expansion Act, 1962

The U.S. continues to impose tariffs under Section 232 of the Trade Expansion Act of 1962.
Under Section 232, the U.S. has imposed a 50% tariff on steel and aluminium imports.
These tariffs remain unaffected by the Supreme Court ruling.

Impact on India’s Steel and Aluminium Exports

Steel and aluminium together form the fourth-largest export category from India to the U.S.
Exports of these items to the U.S. fell by nearly 66% in December 2025, according to trade data.
The fall is linked directly to the high tariffs.

Suspension of ‘De Minimis’ Exemptions

In August 2025, the U.S. suspended the ‘de minimis’ exemption, which had allowed duty-free imports of goods valued under $800 per person per day.
After the Supreme Court ruling, Mr. Trump issued an executive order stating that the suspension of duty-free de minimis treatment would continue.
This affects small Indian exporters and e-commerce businesses that relied on this route to ship products like textiles, toys, cosmetics, and electronic accessories to U.S. customers without paying duties.