Indian government weighs impact of US Supreme Court tariff ruling: Commerce Department

The Indian government is reviewing US tariff developments and their implications, the Commerce Ministry said on Saturday (February 21, 2026).

“We took note of the US Supreme Court ruling on tariffs yesterday (Friday). US President Donald Trump also addressed a press conference in this regard. The US government has announced some steps. We are studying all these developments for their implications,” the ministry said.

Also read: US Supreme Court rejects tariffs LIVE

In a major setback to Trump’s crucial economic agenda for his second term, the U.S. Supreme Court ruled in a 6-3 ruling written by Chief Justice John Roberts that the tariffs the president imposed on countries around the world were illegal and that he had exceeded his authority when he imposed the sweeping levies.

Later, Mr. Trump’s proclamation, dated February 20, read: “I am imposing, for a period of 150 days, a temporary 10% ad valorem import surcharge on items imported into the United States, effective February 24, 2026.”

The US had imposed a 25% reciprocal tariff on India in August.

Later, another 25% was imposed for buying Russian crude, bringing India’s total tariffs to 50%. Earlier this month, the two countries agreed to finalize an interim trade deal under which Washington will cut tariffs to 18%.

So far, the punitive 25% has been abolished. The remaining 25% exists.

Following the announcement, tariffs on Indian goods will now be 10%. The 10% duty is in addition to the existing MFN or import duties in the US

In the wake of the US Supreme Court’s decision on tariffs, Mr Trump said there is no change in the trade deal with India and stressed that the deal with India is in force.

To finalize the legal text for the first phase of the bilateral trade deal, the Indian team will meet its counterparts in Washington from February 23, 2026.

During 2021-2025, the US was India’s largest trading partner in goods. The US accounts for about 18% of total Indian exports, 6.22% of imports and 10.73% of bilateral trade.

In 2024-25, bilateral trade amounted to $186 billion ($86.5 billion exports and $45.3 billion imports).