US imposes 10% temporary tariff after Supreme Court blocks Trump’s reciprocal duties; Indian exporters get relief

21 Feb 2026, 08:16 by Vinay Kakkad · KalingaTV

Indian exporters are set to receive immediate relief after the US Supreme Court struck down key tariffs imposed under President Donald Trump’s reciprocal trade policy, forcing the administration to introduce a temporary 10 per cent import duty under alternative legal provisions to sustain its broader trade strategy.

In a 6–3 majority ruling, the US Supreme Court struck down the reciprocal tariffs imposed under the International Economic Emergency Powers Act (IEEPA), with six of the nine judges holding that the law did not authorize the President to impose such sweeping import duties. The decision effectively invalidated the earlier reciprocal tariffs, including the 25 per cent duties imposed on several trading partners such as India.

Following the ruling, the Trump administration announced a temporary 10 per cent ad valorem import duty on goods entering the United States. The tariff will take effect from February 24 at 10:31 a.m. Indian Standard Time (IST) (12:01 a.m. EST) and will remain in force for up to 150 days unless extended by Congress.

The measure has been imposed under Section 122 of the Trade Act of 1974, which allows the US President to introduce temporary tariffs of up to 15 per cent to address serious balance-of-payments deficits, where imports significantly exceed exports. Certain essential goods will be exempt to ensure domestic economic stability.

US Trade Representative Jamieson Greer said the move would ensure continuity in achieving the administration’s trade policy goals. He also confirmed that investigations would be initiated under Section 301 of the Trade Act of 1974 into alleged unfair trade practices by major trading partners, covering areas such as industrial overcapacity, forced labour, pharmaceutical pricing, digital services taxes, discrimination against US technology firms, and trade practices involving seafood, rice, and other sectors. Existing tariffs imposed under other legal provisions, including Section 301 tariffs on China ranging from 7.5 per cent to 100 per cent and Section 232 sectoral tariffs of 10 per cent to 50 per cent, will remain in force, covering nearly 30 per cent of total US imports.

Trade experts said the Supreme Court’s decision removes the previously imposed 25 per cent reciprocal tariff burden on Indian exporters, providing immediate relief to sectors such as MSMEs and textiles. Manoj Mishra, Partner at Grant Thornton Bharat, said Indian exporters would benefit significantly as the removal of higher tariffs would improve competitiveness in the price-sensitive US market.

“Indian exporters will get immediate relief, and they will not be required to pay the 25 per cent reciprocal tariff. Even under a proposed bilateral trade agreement, tariffs would have been reduced to around 18 per cent, giving India a relative advantage over competitors. While that advantage may now be diluted, overall lower tariff pressure will support export competitiveness,” Mishra said.

He added that refunds of tariffs already collected are unlikely, despite the legal ruling, as the duties were imposed globally and the funds have already been absorbed into government revenues.

The latest move reflects a broader recalibration of US trade policy after the Supreme Court restricted tariff powers under IEEPA. The Trump administration has signaled it will continue using alternative statutory tools, including Section 122 and Section 301, to address trade imbalances and protect domestic industries. With reciprocal tariffs struck down but new temporary duties introduced, trade negotiations between the US and its key partners, including India, are expected to continue amid evolving global trade dynamics.