Trump raises new tariffs from 10% to 15% – how much will India pay now? | World News

New Delhi: The US Supreme Court ruled on February 20 that President Donald Trump exceeded his authority when he imposed global tariffs last year. In a 6-3 decision, the court said the US president cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs on imports from almost any country.

The decision could lead to tariff refunds of about $130 billion, but getting the money back could take years in court. Hours after the court’s decision, Trump signed a proclamation under another law (Section 122 of the Trade Act of 1974) that allowed him to impose a new 10 percent temporary global tariff. On February 21, it announced that it would increase this tariff to 15 percent.

This raises questions about the future of tariffs and which goods and countries will be affected.

Which tariffs have been declared illegal and why?

The Supreme Court decision applies only to tariffs applied under IEEPA. The law gives the president the authority to control trade in emergencies. Trump first used this law in February 2025 to impose tariffs on goods from China, Mexico and Canada, citing fentanyl smuggling as an emergency.

He then increased tariffs in almost all countries on what he called “Liberation Day.” Rates ranged from 10 to 50 percent, calling the U.S. trade deficit an “extraordinary and unusual threat.” The court said the authority to impose such tariffs rests with the U.S. Congress, not the president, and that the purpose of IEEPA is not to generate revenue.

However, some tariffs remain unaffected. Sector-specific taxes imposed on steel, aluminum, lumber, and automobiles for national security reasons under Section 232 of the Trade Expansion Act of 1962 continue despite the court order.

Trump imposes new tariffs under Section 122

Following the court decision, Trump imposed a 10 percent global tariff on all imports to the United States, using the rarely used Section 122. Later, Truth Social announced that it would increase this tariff to 15 percent. “Yesterday’s decision by the Supreme Court on tariffs is invalid and deeply un-American. As president, I am increasing the worldwide tariff from 10 percent to 15 percent,” he said.

Article 122 allows the president to impose tariffs of up to 15 percent for 150 days; After this, Congressional approval is required. Some analysts say that if the period expires, Trump may try to reimpose the tariff by declaring a new emergency.

According to the White House, the president is using Section 122 to resolve key international payment issues and rebalance U.S. trade.

Other laws, including Section 301 of the Trade Act of 1974, also give the U.S. trade representative the authority to investigate foreign trade practices and impose tariffs if deemed discriminatory or unfair.

Although investigations take time, tariffs under Section 232 also remain an option because they target imports deemed a national security risk. Once tariffs are implemented, challenging and repealing them is a long process, economists say.

U.S. Treasury Secretary Scott Bessant said consolidating tariffs under Sections 122, 232 and 301 would have “virtually no impact on tariff revenues in 2026” and could offset losses from IEEPA tariffs.

Will the tariff be refunded?

Trump argued that customs duties strengthen the US economy by adding revenue to the treasury. Reports indicate that the US government has already collected billions of dollars (about $130 billion) from importers.

The Supreme Court ruled that IEEPA tariffs were illegal but did not specify how refunds would be issued. The US president said during media interactions that any refunds could be tied to years of legal disputes.

Minister Bessant echoed the same and said the repayment issue could take years to resolve. The US Court of International Trade is expected to hear these cases. Experts say the refunds will most likely go to larger companies because smaller companies often don’t have the resources to manage the complex process.

According to analysts, even before the decision, more than 1,000 companies had requested tariff refunds, and it is stated that this number may increase. They called on the White House to issue $1,700 refund checks to every American household due to illegal tariffs.

Trump has discussed this possibility publicly numerous times.

What tariffs are currently in effect?

The White House said the new 10 percent tariff will apply to almost all imports, regardless of country of origin, starting Feb. 24. Countries with trade agreements with the US, including India, the UK and members of the European Union, will also face the Section 122 global tariff, but not the previous rates.

The US administration expects these countries to continue to comply with the concessions reached under trade agreements.

Some products will be exempt due to U.S. economic needs or administrative reasons. These include critical minerals, metals, energy products, natural resources, food crops, pharmaceuticals, electronic products, cars and trucks, and aerospace products. Books, donations and personal luggage will also be exempt from tax. Exemptions for many categories are not clearly defined.

Products covered by the United States-Mexico-Canada Agreement (USMCA) are also exempt. The United States has previously said the exemptions keep Canada’s tariffs relatively low. Similarly, under DR-CAFTA, textiles and ready-made clothing from Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras and Nicaragua will also be exempt from tariffs.

Trump has said he will maintain tariffs on low-cost imports, having already ended the ‘de minimis’ exemption for items valued at $800 or less.