US tariffs on India back at 18% with Trump raising global tariff levy to 15%

US President Donald Trump on February 21 sharply escalated his tariff push, announcing that the previously declared 10 per cent worldwide levy will be raised to 15 per cent with immediate effect.

The move, which brings US tariffs on India back to 18 per cent (15+3.4% (MFN rate) =18.4%), signals a renewed hardening of Washington’s trade stance even as legal challenges mount. 

In a post on Truth Social, Trump framed the decision as a response to a recent Supreme Court ruling and accused several nations of having taken advantage of the United States for decades. 

In a statement, Trump wrote, "Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision on Tariffs issued yesterday, after MANY months of contemplation, by the United States Supreme Court, please let this statement serve to represent that I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries, many of which have been “ripping” the U.S. off for decades, without retribution (until I came along!), to the fully allowed, and legally tested, 15% level. During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again - GREATER THAN EVER BEFORE!!! Thank you for your attention to this matter. President DONALD J. TRUMP".

He did not specify which countries would bear the brunt of the higher 15 per cent baseline rate, nor did he spell out the precise legal mechanism for the increase. However, he described the new level as “fully allowed, and legally tested.” 

The announcement comes a day after the Supreme Court of the United States struck down Trump’s global tariffs imposed under the International Emergency Economic Powers Act (IEEPA) in a 6-3 ruling. The court rejected his use of national emergency powers to levy broad-based import taxes. 

The justices held that the 1977 law — historically used for sanctions and asset freezes — does not explicitly authorise tariffs, underscoring that the Constitution vests the power to impose them with Congress. 

Despite the legal setback, Trump’s latest move signals that his administration intends to press ahead with its tariff agenda, setting the stage for fresh economic and political battles over the scope of presidential trade powers.

India's reaction to SC order on tariffs

Earlier in the day, India issued its first response to the US Supreme Court’s ruling that President Donald Trump’s tariffs are illegal, saying it is examining the situation and its potential impact.

In a statement, the Commerce Ministry said, “We have taken note of the US Supreme Court judgment on tariffs delivered yesterday. President Trump has also addressed a press conference on the matter, and certain steps have been announced by the US Administration. We are studying all these developments for their implications.”