New Delhi, Feb 21, 2026
As US Supreme Court struck down President Donald Trump’s use of emergency powers to impose sweeping “reciprocal” tariffs, analysts said on Saturday that roughly 55 per cent of India’s exports to the US is likely to be subjected to Most Favoured Nation (MFN) tariffs, instead of 18 per cent duties (which have now been lowered to 10 per cent).
MFN tariffs are the base rates the US applies to all World Trade Organisation (WTO) members and the average US MFN tariff on Indian goods is approximately 2.8 per cent to 3.3 per cent, which varies across sectors.
Analysts said that the Supreme Court ruling should prompt India to re-examine its trade deal with the United States.
The 6‑3 Supreme Court ruling said that the US administration exceeded its authority under the International Emergency Economic Powers Act, which the court said does not authorise sweeping “reciprocal” tariff measures. Chief Justice John Roberts said in the ruling that
“The president asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration and scope,” however adding that the Trump administration failed to point at any statute in which Congress has previously said that the language in IEEPA could apply to tariffs, according to reports.
However, reports said that the court’s decision does not bar President Trump from imposing duties under other statutory authorities, which carry more procedural limits.
Meanwhile, President Trump has mounted a forceful and combative defence of his trade agenda after the Supreme Court curtailed his use of a key tariff authority, accusing unnamed “foreign interests” of influencing the justices, announcing a new 10 per cent global tariff and signalling that even steeper trade measures — including embargoes — could follow.
The White House has clarified that India will face a 10 per cent tariff temporarily following Trump’s announcement of a new global tariff order. The Trump administration has indicated that additional tariff authorities may be invoked in the coming weeks.
During the press conference, Trump signalled that other statutes — including Sections 232 and 301 — remain available and could support further action.(Agency)
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