TheInterviewTimes.com | February 22, 2026 | 05:51 AM IST | New Delhi
Trump Tariffs: President Trump raises US import tariffs to 15% under Section 122 following Supreme Court ruling invalidating IEEPA tariffs. India assesses impact amid trade deal talks, markets rally. Latest updates on global trade war escalation February 2026.
Supreme Court Delivers Major Blow to Trump Tariffs Strategy
The US Supreme Court ruled 6-3 on February 20, 2026, that President Donald Trump exceeded his authority by imposing sweeping tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977. Chief Justice John Roberts authored the majority opinion, stating the law does not grant the president power to levy tariffs of unlimited scope, amount, or duration. The decision invalidated broad “reciprocal” tariffs that had reached up to 50 percent on certain countries, though it left questions about refunds for over $130 billion already collected unanswered.
Roberts emphasized that Congress holds constitutional authority over tariffs and did not clearly delegate such powers through IEEPA, a statute historically unused for this purpose. Justices Clarence Thomas, Samuel Alito, and Brett Kavanaugh dissented, with Kavanaugh warning of substantial economic disruptions.
Trump Responds with Swift Tariff Increase via Section 122
Hours after the ruling, Trump announced a 10 percent global tariff under Section 122 of the 1974 Trade Act, which allows temporary surcharges up to 15 percent for 150 days to address balance-of-payments deficits. On February 21, via Truth Social, he escalated it to 15 percent “effective immediately,” calling the court decision “ridiculous, poorly written, and extraordinarily anti-American.”
Trump indicated his administration would use the 150-day window to develop “new and legally permissible tariffs” potentially under Sections 301 or 232, which require Commerce Department probes. Exemptions apply to items like critical minerals. The move replaces invalidated measures but caps at the statutory limit without quick congressional approval.
India Monitors Developments Amid Bilateral Trade Talks
India’s Commerce Ministry stated it is “studying all these developments for their implications” after tariffs on its exports had peaked at 50 percent before dropping to 18 percent under a recent interim deal. Union Minister Pralhad Joshi noted a formal response from commerce or external affairs ministries is forthcoming, with a delegation heading to Washington starting February 23 for clarity.
Trump affirmed the India deal remains intact despite the shift. However, the ruling offers New Delhi leverage to renegotiate amid questions over whether the 15 percent applies universally or respects prior pacts. Congress party in India questioned compromises in the deal.
Markets Rally on Ruling, Brace for Next Phase
US stocks surged post-ruling: S&P 500 up 0.69 percent, Dow Jones 0.47 percent, Nasdaq 0.90 percent on February 20, as investors viewed limits on Trump’s powers positively. Treasury Secretary Scott Bessent projected stable 2026 tariff revenue.
Global reactions vary, with potential retaliation eyed. Congress members like Rep. Don Bacon signal challenges to the new order, insisting tariffs need legislative approval.
What’s Next in Trump Tariffs Saga
The 150-day clock under Section 122 starts soon, pressuring Trump for alternatives before expiration around July 2026. Ongoing investigations could yield targeted duties, while trading partners like India negotiate. Legal battles over past collections and refunds loom large.
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