America has implemented 10% global tariff with immediate effect. A White House official has confirmed that this tariff will remain in effect until another legal authority is implemented. India will also be included among the countries paying 10% tariff under this new system. When the official was asked whether India would have to pay 10% tariff and whether it would replace the old tariff imposed under IEEPA (International Emergency Economic Powers Act), he clearly said, ‘Yes, 10 percent will remain in force until any other authority comes into force.’ The official also advised all trade partners to abide by the trade agreements made with the US.

According to ANI report, this decision has come at a time when the US Supreme Court, with a majority of 6-3, gave a big blow to the Trump administration. The court said that under the IEEPA Act of 1977, the President does not have explicit authority to impose blanket import duties. According to the Constitution, this power rests with Congress. Chief Justice John Roberts along with Neil Gorsuch, Amy Coney Barrett and three justices joined the majority. Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented and supported the administration’s powers. This decision has invalidated billions of dollars of “reciprocal” and tariffs. It is estimated that the government may have to face refund claims ranging from 130 to 175 billion dollars.

Trump called the decision ludicrous

President Trump described the Supreme Court’s decision as terrible and ludicrous. He said, ‘The court said that I cannot take even 1 dollar under IEEPA. I can close down business, end the country’s trade system, but can’t impose a $1 fee, how ridiculous is this?’ Trump alleged that the court is influenced by foreign interests and said that other countries are happy with this decision, but will not dance for long.

New tariff under section 122

After the Supreme Court’s decision, Trump announced signing an executive order to impose a 10 percent global tariff under Section 122 of the Trade Act of 1974. This provision allows for the imposition of a temporary tax of up to 15 per cent for 150 days, specifically to address the balance-of-payments deficit. Trump clarified that the tariffs already implemented under Section 232 (national security) and Section 301 (unfair trade practices) will remain in full effect.

Impact on India-US trade agreement

Trump said the ongoing India deal, which reduced reciprocal tariffs to 18%, would be maintained under the new legal process. This situation could be complicated for India, because the 10% global tariff will be applicable on top of the existing duties. This may affect exports, especially steel, aluminium, auto parts and textile sectors.

US President Donald Trump has expressed deep disappointment over the Supreme Court’s cancellation of his tariff orders. He said that the court did not give any clarity on the future of the huge amount collected through tariffs in the last one year. In response to the questions of reporters at the White House, Trump said, ‘We have collected hundreds of billions of dollars. So I ask, what will happen with that money? There was no discussion on this at all.’ He further said, “Don’t you think they could have written a line whether the money should be kept or returned? Now perhaps this issue will be stuck in litigation for the next two years. This is a bad decision, as if it was not written by sensible people.’

It was not made clear in the Supreme Court’s decision whether the amount recovered as tariff would be returned or not. It is estimated that an amount of more than $175 billion may come under the ambit of refund claims. US Treasury Secretary Scott Besant has said that if refunds have to be given after the decision, then the Treasury Department is ready for it, but the Supreme Court also admitted that this process can be complicated.

.@POTUS: “We’ve taken in hundreds of billions of dollars… and so, I say, ‘What happens to all of the money that we took in?’ It wasn’t discussed. Wouldn’t you think they would’ve put one sentence in there saying keep the money or don’t keep the money?” pic.twitter.com/BgG7nYuRyj

— Rapid Response 47 (@RapidResponse47) February 20, 2026

New 10 percent global tariff under section 122

Soon after the Supreme Court setback, Trump announced that he would sign a new executive order under Section 122 of the Federal Law, which would impose a global tariff of 10 percent. This will be in addition to the existing tariff. This step is being considered as the next phase of Trump’s aggressive trade policy. He said, ‘We may remain stuck in court for 5 years, but we will not back down.’

political reactions

While most Democrats welcomed the Supreme Court’s decision, Elizabeth Warren, the top Democrat on the Senate Banking Committee, warned that consumers and small businesses have no clear legal system to get back the amounts of tariffs already paid. This decision is not only a blow to the trade policy of the Trump administration, but also has a significant impact on the balance between the powers of the executive and the legislature.