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The United States has temporarily cut tariffs to 10 percent on Indian imported goods after a big court defeat instead of the 18 percent rate that was agreed upon in the new bilateral interim trade agreement. The US Supreme Court is what brought the change as a result of its February 20, 2026, 6-3 decision in Learning Resources v. Trump, which declared the blanket reciprocal tariffs that were promulgated by President Donald Trump under the 1977 International Emergency Economic Powers Act (IEEPA) as unconstitutional usurpations without congressional consent.

Trump issued an executive order that, under Section 122 of the Trade Act of 1974, may impose temporary duties of up to 150 days of up to 15 percent on almost every other country as a remedy to balance-of-payments problems hours after the order. The measure would be effective beginning February 24, 2026, at 12:01 a.m. EST.

White House officials reported to media outlets such as CNBC News and ANI that countries that have signed previous trade agreements, such as India, will now pay this temporary flat 10 percent rate, which supersedes any higher negotiated rate, such as the 18 percent reciprocal tariff that was agreed upon in the 6 February 2026 joint statement between the US and India. The transaction had also reduced the 50% duty (including punitive rates related to imports of Russian energy by India) in exchange for India lowering the barriers to US goods.

This is not final since the administration will seek other legal jurisdictions to levy more relevant or negotiated tariff rates, a White House official said. The SC judgment compelled Trump to make this interim change on fundamental deal quid pro quo conditions, where India pays and the US does not, but nothing changes.

It provides Indian textile, pharmaceutical, and gem exporters, among others, with a short-term reprieve, but there is still doubt amongst them as the administration contemplates new investigations under Section 301/232. Development bilateral negotiations now move towards a wider trade agreement—the exports of India would be affected by this 150-day hiatus! Stay tuned for updates.