The United States has imposed a new 10 percent tariff on imports from across the world, including India, in a rapid policy shift that follows a legal setback at the highest judicial level. President Donald Trump signed an executive order authorising the new duties within hours of the Supreme Court invalidating the earlier tariff regime, signalling the administration’s determination to maintain trade barriers through alternative legal routes.

The Supreme Court had ruled that the sweeping tariffs introduced last year were illegal, stating that the 1977 emergency law invoked by the administration did not clearly empower the president to impose broad-based duties without explicit approval from Congress. That judgment forced a halt to tariff collections under the International Emergency Economic Powers Act, with US Customs and Border Protection instructing ports to deactivate related tariff codes effective Tuesday.

However, the pause proved short-lived. The administration moved quickly to replace the invalidated duties with a fresh set of tariffs imposed under a different statutory authority. Officials had earlier indicated that the new rate could be raised to 15 percent, though no formal directive to increase the levy has been issued so far. The rapid policy turnaround underscores the central role trade protection is playing in current US economic strategy.

Importantly, the suspension applies only to tariffs linked to the emergency powers law. Other duties already in force including those imposed on national security grounds under Section 232 and on unfair trade practices under Section 301 remain unaffected. This means exporters continue to face a complex web of overlapping tariffs, adding to compliance costs and uncertainty.

For global businesses, the development signals that legal challenges may slow but not necessarily reverse protectionist policies. Companies that had anticipated relief following the court ruling now face renewed cost pressures. The absence of clarity on whether importers will receive refunds for tariffs collected after the court’s decision further complicates the outlook, particularly for firms operating on thin margins.

From India’s perspective, the move carries meaningful implications. The United States is among India’s largest export destinations, spanning sectors such as pharmaceuticals, engineering goods, textiles, auto components, and IT hardware. A uniform tariff increases landed costs for American buyers, potentially eroding price competitiveness for Indian exporters relative to domestic US producers or suppliers from countries with preferential trade arrangements.