US Supreme Court’s end to Trump’s tariff tantrum boosts India’s hand

The US Supreme Court on 20 February ruled that he exceeded his authority when imposing sweeping tariffs under a law reserved for national emergencies.

The US Supreme Court, divided 6-3, held that his aggressive approach to tariffs on products entering the US from around the world was not permitted under the 1977 International Emergency Economic Powers Act (IEEPA).

The ruling wipes out the 10% tariff Trump imposed on nearly every country in the world, as well as specific, higher tariffs on some of the top US trading partners, including Canada, Mexico, China, the European Union, Japan, and South Korea. Several of these countries have negotiated trade pacts with the US.

The ruling was authored by Chief Justice John Roberts, who was joined by three liberal justices and two fellow conservatives, Amy Coney Barrett and (the Trump-nominated) Neil Gorsuch, in the majority.

Apparently, the justices rejected arguments that tariffs had helped him achieve foreign policy goals, curbing his ability to impose levies at will to address geopolitical conflicts, including threats to penalize countries that do business with Iran or to gain leverage in his bid to acquire Greenland.

"Deeply disappointed", Trump signed off on a global 10% tariff "on all countries", hours after the Supreme Court order. "It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately," he wrote on his Truth Social platform.

He also insisted tariffs previously imposed under Section 232 (National Security) and existing Section 301 (Unfair Trade) remain “in full force and effect”.

But these levies can remain in place for 150 days, unless Congress extends them.

What does this mean for India and the 18% tariffs on it?

According to Trump: “Nothing changes”.

“They'll (India) be paying tariffs, and we will not be paying tariffs. So, the deal with India is that they pay tariffs," he said answering questions at the White House following the SC's order.

“I think Prime Minister Modi is a great gentleman, a great man,” he said, adding that “he was ripping us off”.

He also reiterated his claim that he stopped a war between India and Pakistan following the 2025 Operation Sindoor. He said it was his tariffs that “stopped the war between India and Pakistan”, stating: “And I did it largely with tariffs. I said, ‘Look, you’re going to fight, that’s fine, but you’re not going to do business with the US, and you’re going to pay a 200% tariff, each country’. And they called up and they said, ‘we have made peace’.”

But with the threat of higher tariffs likely to end, India could re-examine the terms of the deal.

The development comes amid reports of a possible Modi visit to Israel on 25-26 February, as well as news that New Delhi has joined the Trump-led Board of Peace (BoP) as an observer.

Commentary in India has focused on how Trump's BoP could end up involving itself in the Kashmir dispute—anathema to New Delhi—and therefore why India should keep a respectable distance. Yet India has chosen to remain engaged in the BoP after all. With Pakistan and its allies, such as Türkiye, inside, it’s anyone’s guess how soon they could create trouble for India.

Interestingly, New Delhi has also joined Pax Silica—a US-led grouping aimed at building a resilient supply chain for critical minerals and artificial intelligence. The move is seen as significant for India, as Pax Silica formalizes a coalition that includes Australia, rich in critical minerals, and Japan, known for its chemical manufacturing and precision machinery.

What the US is attempting to build is a “closed-loop” ecosystem designed to slow China’s rapidly advancing domestic chip-making capacity.

Modi’s possible visit to Israel—not yet confirmed by the external affairs ministry—will happen after a major Indian outreach to Arab nations. New Delhi hosted an Arab foreign ministerial meeting at the end of January 2026, the second such outreach in a decade. In December, Modi visited Jordan and Oman as part of a three-nation tour that also took him to Ethiopia.

The visit also comes amid a major escalation in tensions in the Gulf, as the US amasses military might in the seas near Iran—part of what is being called US “Gunboat Diplomacy”, i.e., pressuring Iran to make a deal on its nuclear programme and other issues. The USS Gerald Ford is said to be in the Mediterranean Sea on its way to join the Abraham Lincoln Carrier Strike Group, operating in the Arabian Sea.

The US wants Iran to completely give up uranium enrichment—a process used to make fuel for atomic power plants but also capable of producing material for a nuclear warhead. Washington and Tel Aviv also want Tehran to abandon long-range ballistic missiles, stop backing armed groups across the Middle East, and halt the use of force against domestic protesters. Iran insists negotiations should be limited strictly to its nuclear programme, with all other issues off the table.

In June 2025, the US struck three nuclear sites in Iran almost simultaneously with Israeli operations targeting senior Iranian military leaders.

Though strategically weaker than ever, with Hamas and Hezbollah severely weakened and the fall of the Assad government in Syria, Iran has warned that all US bases in the region would become targets if attacked. It has also threatened the closure of the Strait of Hormuz, the narrow waterway between Iran and Oman connecting the Persian Gulf to the Gulf of Oman and the Arabian Sea.

The strait is among the world’s most critical energy routes: In 2025, roughly 34% of globally traded seaborne oil passed through it.

For India, stability here is vital. The country imports more than 80% of its oil, meaning price shocks quickly translate into inflation, affecting food and fuel costs domestically. The region is also home to roughly nine million Indian expatriates whose remittances are economically significant. Transfers from the Gulf Cooperation Council—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—accounted for about 40% of the $118.7 billion India received in 2023-24.

For comparison, India’s total inward foreign direct investment (FDI) in 2023-24 stood at $71.28 billion.

Yoon had ordered troops to arrest his political enemies. Spiralling public outrage scuttled Yoon’s attempt to rule by martial law, with citizens confronting troops who had arrived to take over the legislature. With the crowds holding the troops at bay, lawmakers gathered ​inside the legislature and voted down Yoon’s decree in the middle of the night.

But the attempt to grab power triggered South Korea’s worst political crisis in decades. Yoon was impeached, and the country held fresh elections that elected Lee Jae Myung.

There were reports that Khan had lost vision in one of his eyes after being denied proper and timely medical care in prison.

The Indian former players have signed an appeal seeking dignified treatment for Khan. The appeal was initiated by former Australian cricketer Greg Chappell, urging better care for Khan, who was Pakistan’s prime minister from 2018 to 2022. Khan has been in jail for more than two years. Others who signed the appeal along with Gavaskar and Dev include Clive Llyod, Allan Border, Nasser Hussain, and David Gower.

Incidentally, Khan’s term as prime minister saw heightened tensions with India and ties dipping.

Elizabeth Roche is an associate professor of practice at O.P. Jindal Global University.