US Supreme Court Nullifies Trump Tariff, Industry Body FISME Hails Ruling

New Delhi, Feb 21 (KNN) With the US Supreme Court striking down President Donald Trump's sweeping tariff on its trade partners, India now faces a reduced 10% duty on its shipments to the world's biggest market.

The US had earlier this month cut import duty on most of Indian exports to 18% from the punishing rate of 50% following the announcement of a framework for interim trade deal between the two countries.

From 24th February 2026, the effective tariff will be MFN (most favoured nation) rate prevalent before reciprocal tariff plus 10%.

As reduced tariff leads to Indian exports becoming competitive in the American market, Federation of Indian Micro and Small & Medium Enterprises (FISME) has welcomed the development stating that the US Supreme Court's decision would bring stability in global trade.

"With the US Supreme Court’s intervention, certainty will return in global trade," the industry body said in a statement.

In a landmark decision which is expected to reset the global trade and world economy, the US Supreme Court in its ruling on February 20 said that President Trump cannot use a 1977 law, the International Emergency Economic Powers Act (IEEPA), to levy taxes on imports from nearly every country of the world.

Hours after the ruling, President Trump invoked his authority under section 122 of the Trade Act of 1974 and signed a proclamation to impose a 10% ad valorem import duty on articles imported into the United States.

"The Proclamation imposes, for a period of 150 days, a 10% ad valorem import duty on articles imported into the United States. The temporary import duty will take effect February 24 at 12:01 a.m. eastern standard time," the White House said in a statement.

Even as the US Supreme Court ruling has brought relief for trade and industry across the world including India, there is still confusion over applicable tariff and refund of duties already collected. There is also a lack of clarity on trade deals the US has already signed with its partners and also those which are in the pipeline. Trade deal with India is also yet to be signed even as negotiations have largely concluded.

The US had on February 6, 2026 said that it had reached a framework for an Interim Agreement with India regarding reciprocal and mutually beneficial trade. Following this, Prime Minister Narendra Modi took to social media to announce the much-awaited trade deal underlining the Trump administration's decision to cut tariffs on Indian goods to 18%.

In his social media post, President Trump had claimed that India had agreed to stop buying Russian oil and procure items worth US$500 billion from the US as part of the deal.

Speaking at a White House media conference after the Supreme Court decision, Trump termed the ruling deeply disappointing while in response to a question on impact of the decision on India-US trade deal he said 'nothing changes."

"Effective immediately, all National Security TARIFFS, Section 232 and existing Section 301 TARIFFS, remain in place, and in full force and effect. Today I will sign an Order to impose a 10% GLOBAL TARIFF, under Section 122, over and above our normal TARIFFS already being charged..."  White House posted Trump's statement on 'X'.

(KNN Bureau)