US President Donald Trump has raised the global import tariff to 15 per cent, less than 24 hours after the Supreme Court of the United States struck down his earlier sweeping trade order. The swift escalation has direct implications for India and other major trading partners, with New Delhi now set to face a uniform 15 per cent import duty on most goods entering the United States once the executive order is formally signed.
The development follows a major legal setback for the Trump administration. The Supreme Court ruled that the White House had exceeded its authority by imposing broad-based tariffs under emergency economic powers. The justices held that the statute cited by the administration did not authorise such sweeping duties, effectively dismantling the earlier tariff framework.
Within hours of the verdict, Trump pivoted to an alternative legal route. He invoked Section 122 of the Trade Act of 1974 to impose a temporary 10 per cent “ad valorem” duty on most imports for 150 days. The President described the move as a legally permissible interim measure while a long-term tariff structure is worked out. By the next day, he announced that the rate would be increased to 15 per cent, calling it the “fully allowed and legally tested” level.
In a social media statement, Trump argued that many countries had been “ripping” the United States off for decades and insisted that the new tariff would correct persistent trade imbalances. The administration has maintained that the temporary duty is aimed at addressing the widening US goods trade deficit and broader balance-of-payments concerns while encouraging domestic manufacturing.
For India, the new rate brings a complex mix of relief and uncertainty. Under a recently negotiated interim framework, the United States had agreed to reduce reciprocal tariffs on Indian goods from 50 per cent to 18 per cent. In exchange, India committed to cutting or eliminating duties on US industrial goods and a wide range of agricultural products. With the global rate now set at 15 per cent, Indian exports will technically face a slightly lower uniform duty than the previously agreed 18 per cent structure.
However, clarity is still evolving. India’s Ministry of Commerce & Industry said it is studying the Supreme Court judgment and subsequent announcements from Washington to assess their implications. Officials are closely examining product-level details, exemptions and the broader direction of bilateral trade negotiations.
Certain categories are expected to remain exempt from the 15 per cent tariff. These may include critical minerals, energy products, select agricultural commodities, pharmaceuticals, specific electronics, aerospace goods and informational materials. Such exemptions could cushion the impact on sectors like pharmaceuticals and high-value manufacturing. But industries such as textiles, engineering goods and auto components may need to reassess pricing strategies in the American market.
US officials have indicated that the Office of the United States Trade Representative will simultaneously pursue fresh investigations under Section 301 of the Trade Act of 1974 to design a more durable tariff framework. This signals that the current 15 per cent duty may serve only as a transitional measure pending further trade actions.
For global markets, the rapid policy shifts introduce renewed uncertainty. Businesses planning exports to the US must now navigate a moving tariff landscape. For India, the coming months will be critical as negotiators seek to protect export interests while keeping broader trade talks on track.
The 15 per cent tariff is expected to remain in effect for 150 days under Section 122 authority. During this period, the US administration will review its long-term strategy, consider sector-specific measures and possibly introduce a new structured tariff regime.
In the span of just two days, Washington’s trade policy has undergone a dramatic recalibration. For India and other trading partners, the message is clear: flexibility and vigilance will be essential as the global trade equation continues to evolve.
FAQs: Trump’s 15% Global Tariff and Its Impact on India
Q1. Why did Donald Trump raise the global tariff to 15%?
US President Donald Trump increased the tariff after the Supreme Court of the United States struck down his earlier sweeping trade order. He invoked Section 122 of the Trade Act of 1974 to impose a temporary, legally permissible tariff, first at 10% and then raising it to 15%.
Q2. What did the US Supreme Court rule?
The Supreme Court ruled that the administration had exceeded its authority by imposing broad-based tariffs under emergency economic powers. The Court said the law cited did not authorize such sweeping duties.
Q3. What is Section 122 of the Trade Act of 1974?
Section 122 allows the US President to impose temporary tariffs for up to 150 days to address balance-of-payments deficits or protect the US economy during financial stress.
Q4. How will the 15% tariff affect India?
India will now face a uniform 15% import duty on most goods entering the US. This replaces the earlier 18% reciprocal tariff structure agreed under the interim trade framework.
Q5. Is the new 15% tariff permanent?
No. The tariff is temporary and valid for 150 days. During this period, the US administration is expected to develop a long-term tariff structure.
Q6. Which sectors may be exempt from the new tariff?
Certain categories are expected to remain exempt, including critical minerals, energy products, select agricultural commodities, pharmaceuticals, aerospace goods, specific electronics, and informational materials.
Q7. How has India responded to the development?
India’s Ministry of Commerce & Industry has said it is studying the Supreme Court ruling and the subsequent US announcements to assess their implications for trade and negotiations.
Q8. Will this affect the India-US trade agreement?
The situation introduces uncertainty. While the 15% rate is slightly lower than the previously agreed 18%, ongoing negotiations may be influenced depending on how the US structures its long-term tariff policy.
Q9. What happens after the 150-day period ends?
The US government may introduce a new tariff framework, potentially following fresh investigations under Section 301 of the Trade Act of 1974.
Q10. Why is the US administration defending the tariff?
The administration argues that the measure addresses widening trade deficits, corrects external imbalances, and supports domestic manufacturing in the United States.