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.

Indian Exports Get Major Boost from India-US Trade Deal

Indian exports are expected to witness an exponential rise following the India-US trade deal, after former US President Donald Trump claimed that tariffs on Indian goods have been slashed sharply. The move has been welcomed by top exporters and industry bodies, who believe the decision will bring immediate relief to labour-intensive sectors and strengthen India’s position in the US market.

According to exporters, the reduction of the so-called ‘Trump Tariffs’ from 50% to 18%, effective immediately, could be a game-changer for several key industries that were under pressure due to high duties and global slowdown.

US Remains India’s Largest Trading Partner

Highlighting the importance of the development, Confederation of Indian Industry (CII) President Rajiv Memani told ANI that the United States is not only the world’s largest economy but also India’s biggest trading partner.

 “Total Indian exports to the US are estimated at around $80–90 billion annually,” Memani said.

This strong trade relationship makes any tariff relief from the US especially significant for Indian exporters looking to expand volumes and improve competitiveness.

Labour-Intensive Sectors to Gain the Most

Breaking down the export numbers, Memani explained that nearly 50–60% of India’s exports to the US—roughly $50 billion—come from labour-intensive sectors such as:

 Textiles and garments

 Leather and footwear

 Fisheries

 Gems and jewellery

 Auto components

 Engineering goods

He added that the tariff relief opens up an export opportunity worth nearly $50 billion (around ₹4.50 lakh crore), particularly for sectors that have faced challenges in recent months.

Ratings Agencies and Industry Echo Optimism

Global ratings agency Moody’s also termed the tariff reduction credit-positive for Indian exports, especially for gems, jewellery, textiles and apparel—India’s top export segments.

Chandrima Chatterjee, Secretary General of the Confederation of Indian Textile Industry (CITI), called the finalisation of the India-US trade deal a “major relief” for the textile and apparel industry.

Legal and trade experts agree. Rudra Kumar Pandey, Partner at Shardul Amarchand Mangaldas & Co., told PTI that sectors such as textiles, gems and jewellery, leather, engineering goods and auto components will benefit disproportionately, as they directly compete with Vietnam and Bangladesh in the US market.

Meanwhile, Sanjay Agarwal, Managing Director of Century Plyboards India Ltd, noted that the new trade dynamics could also help pharma, engineering and auto ancillary sectors.

India’s GDP Outlook Improves

The positive sentiment has spilled over into economic forecasts. Global investment banks have raised India’s GDP growth projections following the tariff cut announcement. Goldman Sachs, according to ANI, revised its CY26 real GDP growth forecast upward by 20 basis points to 6.9% year-on-year.

Key Exemptions Still in Place

It is also noteworthy that sectors like pharmaceuticals and consumer electronics were already exempted from Trump Tariffs, further supporting Indian exports in high-value categories.

Why This Matters Now

At a time of global trade uncertainty, the India-US trade deal offers timely relief. With lower tariffs, Indian exporters are better placed to scale up shipments, protect jobs in labour-intensive sectors, and contribute to faster economic growth—making this development crucial for India’s export-led growth strategy.