The Supreme Court has put a big ‘brake’ on the ‘tariff policy’ through which US President Donald Trump has been pressurizing countries around the world for some time. After this historic court decision yesterday, the Commerce Ministry of the Government of India is also in full alert mode. The ministry officially said on Saturday (February 21, 2026) that they are deeply studying these rapidly changing developments taking place in America and their economic impact on India. In the coming days, there may be a big change in the prices of foreign trade and import-export.
Trump’s ‘Plan B’ after Supreme Court’s rebuke
At the root of this entire controversy was an old law of 1977, on the basis of which President Trump was imposing huge taxes (tariffs) on different countries as per his wish. But the US Supreme Court, with a majority of 6-3, made it clear that the President does not have the right to impose such arbitrary taxes under this law. Angered by this decision of the court, President Trump even said in a press conference without any evidence that the court is influenced by “foreign forces”. However, immediately after this rebuke from the court, he found a new way and announced ‘Temporary Import Surcharge’. This new rule is going to come into effect from February 24, which will remain effective for the next 150 days.
Tax dropped from 18% to 10%
Amidst this entire legal battle for Indian exporters, there is a relief news also hidden. While earlier there was talk of imposing tariff on Indian goods at the rate of 18%, now under the new ‘Global Levy’ announced by the President, it has been reduced to 10%. This is a complex situation for the Commerce Ministry of India. On one hand, tax rates have come down, but on the other hand, Trump’s statement that “they (India) will give tariffs and we will not”, is challenging India’s trade strategy. The government is now seeing how much impact this new burden of 10% will have on the earnings of Indian companies.
What will be its effect on the common citizen?
Now the question arises that what impact will this court and diplomatic battle going on across the seven seas have on your and our lives? In fact, when countries like America make changes in tariffs, the profits of India’s IT sector, textile industry and pharma companies are directly affected. If taxes are reduced, more goods of Indian companies will be sold in America, which will bring dollars into the country and strengthen the economy. But if this uncertainty continues, its impact can be seen everywhere, from the stock market to new job opportunities.