Trump Raises Global Tariffs to 15%: Legal, Constitutional, and Trade Implications for India

Introduction

In a major escalation of global trade tensions, United States President Donald Trump announced an increase in proposed global tariffs to 15%, up from the earlier announced 10%. This announcement follows a significant US Supreme Court ruling limiting presidential tariff powers, prompting Trump to invoke alternative executive authority to impose temporary duties.

The move has important consequences for India’s trade position, global supply chains, and international trade law norms, especially given ongoing bilateral negotiations between New Delhi and Washington.

Background: Trump’s Global Tariff Policy Shift

On Saturday, President Trump stated that he would raise the global tariff rate to 15%, citing dissatisfaction with a recent Supreme Court decision that struck down his earlier tariff regime.

Previously:

  • Trump had announced a 10% global tariff on imports using executive authority.

  • The tariffs were framed as emergency measures to address trade deficits and national security concerns.

  • The new tariffs are temporary and limited to 150 days, unless Congress extends them through legislation.

This represents a renewed assertion of unilateral trade powers by the US President, challenging both judicial and legislative constraints.

US Supreme Court Ruling on Presidential Tariff Powers

Judicial Precedent: Limits on Emergency Tariff Authority

On Friday, the US Supreme Court ruled (6–3) that tariffs imposed by Trump under emergency powers were unconstitutional.

Key Holding

The Court held that the International Emergency Economic Powers Act, 1977 (IEEPA) does not authorize the President to impose tariffs.

Reasoning

The majority opinion emphasized:

  • Tariff-setting authority constitutionally belongs to Congress, not the President.

  • Emergency powers under IEEPA relate primarily to financial transactions, sanctions, and asset controls, not taxation or tariff policy.

  • Presidential tariff imposition without congressional authorization violates the separation of powers doctrine.

This ruling invalidated the so-called “reciprocal tariffs” imposed on multiple countries, including India.

Constitutional Provisions Governing Tariffs in the United States

Article I, Section 8, Clause 1 of the US Constitution

The US Constitution explicitly grants Congress the power:

“To lay and collect Taxes, Duties, Imposts and Excises.”

This clause establishes that tariff authority is a legislative power, not an executive one.

Separation of Powers Doctrine

Under the US constitutional structure:

  • Congress regulates commerce and taxation.

  • The President executes laws and conducts foreign policy.

  • Courts interpret constitutional limits.

The Supreme Court ruling reaffirmed that executive overreach into tariff policy violates constitutional separation of powers.

Statutory Framework for US Tariffs

International Emergency Economic Powers Act, 1977 (IEEPA)

  • Allows the President to regulate economic transactions during a national emergency.

  • Commonly used for sanctions and asset freezes.

  • The Court ruled it does not authorize tariffs.

Trade Act of 1974 (Section 301)

  • Allows tariffs in response to unfair trade practices.

  • Requires investigations and procedural safeguards.

Trade Expansion Act of 1962 (Section 232)

  • Allows tariffs on national security grounds.

  • Requires a Commerce Department investigation.

Trump’s new global tariffs bypass these statutory procedures, raising legal questions.

Trump’s Response: Executive Order and Global Tariffs

Following the Supreme Court ruling, Trump:

  1. Issued an executive order imposing a 10% global tariff.

  2. Increased the proposed tariff rate to 15% after criticizing the Court.

  3. Limited the tariffs to 150 days, pending congressional action.

This maneuver attempts to circumvent judicial constraints through temporary executive trade measures, which could face further litigation.

Impact on India: Tariff Trajectory and Effective Rates

Historical Tariff Levels

  • Pre-Trump tariff levels on India were around 3.5%.

  • Trump initially imposed 25% reciprocal tariffs.

  • An additional 25% duty was imposed over India’s Russian oil imports, raising tariffs to 50%.

  • In February 2026, tariffs were reduced to 18% following an interim trade framework agreement.

Effect of the New 15% Global Tariff

With Trump proposing a 15% global tariff, India’s effective tariff burden is estimated at 18.5%, slightly higher than the negotiated 18%.

This means:

  • No dramatic change in India’s current tariff exposure.

  • Continued uncertainty for Indian exporters due to fluctuating US trade policy.

Political and Diplomatic Reactions

Trump publicly criticized the Supreme Court ruling, calling the judges who ruled against him:

  • “Disloyal to our Constitution”

  • “Lapdogs”

He praised Justices Brett Kavanaugh, Clarence Thomas, and Samuel Alito, who dissented, framing them as aligned with his political agenda.

This rhetoric underscores a broader constitutional conflict between the executive and judiciary over trade powers.

Implications for India’s Trade and Economy

1. Trade Negotiations

The tariffs complicate the interim India–US trade deal, potentially delaying a comprehensive Free Trade Agreement.

2. Export Competitiveness

Indian exports in sectors like:

  • Pharmaceuticals

  • Textiles

  • Engineering goods

  • IT hardware

may face higher landed costs, reducing competitiveness in the US market.

3. Geopolitical Considerations

The tariff escalation is linked to:

  • India’s Russian oil imports

  • US geopolitical strategy in Ukraine

  • Broader US-China and US-India strategic balancing

Trade policy is increasingly being used as a foreign policy instrument.

International Trade Law Implications

WTO Compatibility

Unilateral global tariffs may violate:

  • GATT 1994 Article I (Most-Favoured-Nation principle)

  • GATT Article II (Tariff Bindings)

  • WTO Agreement on Safeguards

Unless justified under national security exceptions (GATT Article XXI), such tariffs could be challenged at the WTO.

Key Judicial Precedents Relevant to US Tariff Powers

Youngstown Sheet & Tube Co. v. Sawyer (1952)

  • Established limits on presidential emergency powers.

  • Held that executive action without congressional authorization is unconstitutional.

Algonquin SNG, Inc. v. FPC (1976)

  • Recognized Section 232 tariff authority but emphasized statutory limits.

Recent Supreme Court Ruling on IEEPA (2026)

  • Held that IEEPA does not authorize tariffs, reaffirming congressional supremacy over taxation and trade duties.

Conclusion: A Precarious Moment for Global Trade

Trump’s decision to raise global tariffs to 15% represents a direct challenge to constitutional checks and balances and multilateral trade norms. While India’s effective tariff rate changes only marginally, the broader uncertainty signals a volatile phase in US trade policy.

The episode highlights a fundamental constitutional principle: trade taxation is legislative power, not executive prerogative. Whether Congress endorses or curbs Trump’s temporary tariffs will determine the future of US trade governance—and India’s export trajectory.

Location: Pune, Maharashtra, India

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