In a seismic shift for global trade, the US halts emergency tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The US Customs and Border Protection (CBP) announced collections stop at 10:30 AM IST today, following a US Supreme Court verdict three days ago deeming them illegal.

This comes amid escalating trade tensions, making it highly relevant now as President Trump's aggressive policies reshape economies. Economists at Penn Wharton estimate a whopping $175 billion (₹15.75 lakh crore) refund bill for importers.

Supreme Court Blow to Trump’s IEEPA Tariffs

The 6-3 ruling on Feb 20 declared Trump's use of IEEPA for broad tariffs overstepped authority. CBP removed all related codes from its system. Yet, no clarity on refunds for tariffs collected in the last three days—or the massive past haul generating $500 million daily.

Trump fired back on Truth Social, calling the verdict "foolish" but claiming it boosted his powers under other laws. "If any country plays games, higher tariffs await," he warned.

Trump Rolls Out 15% Global Tariff Under Section 122

Hours after the ruling, Trump unveiled a uniform Trump 15% global tariff on all imports starting today, via Section 122 of the 1974 Trade Act. This allows quick 15% levies for 150 days in economic emergencies, needing Congress approval beyond that.

• Exemptions: Beef, tomatoes, oranges, critical minerals, medicines, electronics, passenger vehicles.
  
  

• Historical nod: Echoes Nixon's 10% tariff in 1971 amid dollar woes.
  
  

Sections 232 (national security, e.g., steel/aluminum) and 301 (unfair trade, e.g., China IP theft) remain intact.

India US Trade Impact: Uncertainty Looms

India US trade impact intensifies. Indian goods, previously at 26-50%, now face this 15% blanket. A temporary US-India deal could ease it, but Congress extension and future legal moves cloud the outlook.

Experts like trade analyst Rajiv Kumar note: "Short-term relief for high-tariff items, but exporters must diversify amid volatility." Actionable tip: Indian firms should audit Section 232 tariffs exposure and eye FTAs.

This US halts emergency tariffs saga underscores Trump's "America First" push, but risks retaliation. Watch for refunds, court challenges, and India talks—global supply chains hang in balance.

PM Modi Lok Sabha Address Sparks Tension: Kharge Hits Out at Manipur 'Militarised Zone' and US-India Trade Deal

Prime Minister Narendra Modi is set to address the Lok Sabha at 5 PM today, marking his first speech after the landmark US-India trade deal slashed tariffs from 50% to 18%. The session unfolds amid high drama, with Congress President Mallikarjun Kharge slamming the BJP government in Rajya Sabha, calling Manipur a "militarised zone" and accusing it of treating women as mere vote banks.

Parliament Erupts Over US-India Trade Deal

The US-India trade deal, hailed by Commerce Minister Piyush Goyal as "historic," protects India's agriculture and boosts exports. Goyal told the Lok Sabha it safeguards 140 crore Indians' interests and advances Viksit Bharat 2047. Yet, opposition fury peaked—Rahul Gandhi alleged PM Modi was "compromised," flashing excerpts from ex-Army Chief Gen Naravane's unpublished memoir on the 2020 Ladakh standoff.

Proceedings adjourned multiple times due to slogan-shouting like "Surrender Modi." Eight opposition MPs—Gurjeet Aujla, Hibi Eden, Manickam Tagore, Prashant Yadaorao Padole, Kiran Kumar Reddy, Dean Kuriakose, Amarinder Singh Raja Warring, and S. Venkatesan—were suspended for throwing papers at the Speaker's podium.

Kharge's Five-Point Attack on BJP Govt

In Rajya Sabha, Kharge flagged key failures:

• Social Justice & Women: BJP treats women as vote banks; no women's reservation despite promises. RSS/BJP never had a woman president.
  
  

• Economy & Farmers: New labour codes harm workers; save MNREGA. 1% hold 40% wealth, 9.7 lakh govt jobs vacant.
  
  

• Manipur Crisis: State turned into "militarised zone"; minorities targeted via "bulldozer politics."
  
  

• Parliament Democracy: PM skips questions—only 13 of 8,123 answered. Governors in non-NDA states act as BJP offices.
  
  

• Schemes Mismanaged: SC/ST welfare scrapped; Abhyudaya under-utilised by 41%.
  
  

Kharge questioned the trade deal's timing: "Did India yield to US pressure? Farmers protected?"

Opposition Protests Intensify

Rahul Gandhi vowed to hand Naravane's book to PM Modi. SP's Akhilesh Yadav called it a "surrender." Suspended MP Prashant Padole protested outside. BJP's Nishikant Dubey countered with books on Gandhi family scams. Heated exchanges erupted—MoS Ravneet Singh Bittu refused Rahul's handshake, calling Gandhi family "Sikh murderers."

Speaker Om Birla urged decorum amid posters and well-rushing.

Why This Matters Now

With Budget Session ending Phase 1 on Feb 13, this PM Modi Lok Sabha address tests govt-opposition ties post-trade deal and Budget. Economic Survey eyes 6.8-7.2% GDP growth; pending bills loom. As global trade shifts, India's stance draws scrutiny—will Modi address Ladakh, Manipur, and deal details?

The Indian rupee plunged into uncharted territory on Friday, January 23, 2026, briefly hitting an unprecedented 92 against the US dollar before settling at a record closing low of 91.88. This landmark breach caps a period of intense pressure, with the currency slumping over 2% in January alone and marking its position as the worst-performing Asian currency this week. The fall has ignited political controversy and raised concerns about the economic outlook amid sustained foreign capital flight and global uncertainties.

The Immediate Triggers: A Perfect Storm of Outflows and Uncertainty

The rupee’s dramatic slide is attributed to a confluence of immediate factors:

- Sustained Foreign Investor Exodus: Foreign Portfolio Investors (FPIs) have been relentless sellers, withdrawing a massive ₹36,500 crore from Indian equities in just the first 22 days of January. This follows a net outflow of $18.91 billion in 2025. This selling creates direct dollar demand, weakening the rupee.

- Global Risk-Off Sentiment: Analysts point to "risk-off sentiment in global markets" driven by trade tensions and geopolitical worries. Specific concerns include stalled India-US trade talks and US tariff policies under President Trump, which have created an "atmosphere of uncertainty".

- Broad-Based Dollar Demand: Importers and corporates are scrambling to buy dollars ahead of key events like the Union Budget, exacerbating the local currency's decline.

Expert Warnings: More Pain Ahead?

Market experts see limited short-term relief and warn of further depreciation. Anuj Choudhary of Mirae Asset ShareKhan expects the rupee to "trade with a negative bias" due to FPI selling and global sentiment, with a potential range of 91.60 to 92.30. Some forecasts are more stark.

A dealer at a state-owned bank told Business Standard, "We might see the rupee breaching 93 per dollar soon". This view is echoed by treasury experts who cite panic buying from importers and a lack of dollar-selling from exporters expecting further falls.

Political Fallout and the "Speechless" Jab

The record low immediately entered political discourse. Shiv Sena (UBT) leader Aaditya Thackeray slammed the central government, claiming "the BJP is speechless when it comes to giving an explanation on the issue." He labelled the rupee "one of the worst-performing currency[s] in the world," turning the economic event into a political weapon against the ruling party.

A Silver Lining? Exports, the RBI, and Long-Term Context

Despite the alarming headlines, the situation differs fundamentally from past currency crises like the 2013 "taper tantrum." Back then, India was tagged one of the "Fragile Five" with a high current account deficit and inflation. Today, macroeconomic buffers are stronger.

A key question is whether a weaker rupee helps exports. The answer is complex. While a cheaper currency should make Indian goods more competitive, a recent Exim Bank study presents a counterintuitive finding: due to high import dependence in key export sectors, rupee depreciation can increase production costs and may not boost exports as expected.

Table: Sectoral Impact of a Weaker Rupee

| Likely to Benefit | Likely to Be Adversely Affected |

| Information Technology (IT) Services | Oil & Gas (Importers) |

| Pharmaceuticals | Aviation |

| Textiles | Electronics |

| Agriculture & Food Products | Companies with Foreign Debt |

The Reserve Bank of India's (RBI) role is crucial. Analysts note the central bank has intervened in "small amounts" but shown recent restraint. This is likely a deliberate policy choice. As noted by Kotak Mahindra Asset Management, the RBI manages the pace of depreciation to avoid volatility but does not defend a specific level. The RBI possesses a substantial "war chest" including a large short forward book, giving it firepower to smooth extreme moves.

Adjustment, Not Collapse

The breach of the 92 mark is a significant psychological milestone reflecting real global headwinds and capital flight. While near-term pressure may push the rupee toward 93, the broader assessment from economic institutions suggests this is a managed adjustment rather than a collapse. The resilience of India's domestic economy, controlled inflation, and the RBI's strategic buffers provide a backdrop very different from historical emerging market crises. The focus now shifts to the upcoming Union Budget and any progress on the stalled US-India trade deal, which could be pivotal in altering the currency's trajectory.