United States President Donald Trump announced on 21 February 2026 that he would increase the global tariff rate from 10% to 15%. This decision followed a United States Supreme Court ruling that invalidated his earlier use of emergency powers to impose sweeping tariffs. The new 15% tariff, implemented under Section 122 of the Trade Act of 1974, is set to last for a maximum of 150 days unless extended by Congress.US Supreme Court Brings a Breather from Tariffs, but Trump Remains at LargeAccording to The Hindu, the Supreme Court ruled in a 6-3 decision that Donald Trump exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose tariffs during peacetime. The Court stated that such powers must be explicitly granted by Congress, limiting the president’s ability to unilaterally set tariffs.As reported by Hindustan Times, Trump responded to the ruling by first imposing a 10% tariff under Section 122, then raising it to the statutory maximum of 15% within 24 hours. He described the Supreme Court’s decision as “ridiculous, poorly written, and extraordinarily anti-American” and indicated that further tariff actions could follow under other legal authorities.Can India’s Entrepreneurs Withstand the Free Trade 'Shock'?Coverage revealed that the 15% tariff applies to all trading partners and is intended as a temporary measure. The White House clarified that the tariff’s duration is capped at 150 days unless Congress approves an extension, creating uncertainty for global trade partners and industries affected by the change.As highlighted by Siasat, Trump stated in a social media post that the increase to 15% was “fully allowed, and legally tested.” He emphasised that his administration would continue to explore new and legally permissible tariffs in the coming months, signalling ongoing trade policy adjustments.“I, as President of the United States of America, will be, effective immediately, raising the 10% Worldwide Tariff on Countries... to the fully allowed, and legally tested, 15% level,” Trump wrote in his announcement.Analysis showed that India’s commerce ministry is reviewing the implications of the new tariff regime. The previously proposed 18% reciprocal tariff on Indian goods is now considered irrelevant, as the 15% rate will apply uniformly to all countries. Indian officials indicated that ongoing trade negotiations with the US would continue, with adjustments to reflect the new tariff landscape.In the middle of these developments, reporting indicated that the Supreme Court’s decision has introduced significant uncertainty for global markets. The temporary nature of the Section 122 tariffs and the need for Congressional approval after 150 days have raised questions about the long-term stability of US trade policy. Exporters and importers are also assessing the potential for refunds on tariffs collected under the now-invalidated IEEPA authority.As further details emerged, Trump’s executive order bypassed Congress to impose the new tariffs, but the statutory limits mean that any extension will require legislative action. Trade analysts noted that while the new tariffs are legally permissible, they are subject to strict time and rate constraints.“The Court’s ruling is a reminder that any trade measure has to conform to constitutional processes and that predictability is a high priority in global trade,” said an Indian industry representative, reflecting concerns about ongoing uncertainty.Further coverage noted that the Supreme Court’s decision also casts doubt on Trump’s proposal for $2,000 “tariff dividend” payments to Americans, as the revenue source from tariffs is now uncertain. The White House has indicated that alternative funding options are being considered, but no stimulus payments have been approved to date.Note: This article is produced using AI-assisted tools and is based on publicly available information. It has been reviewed by The Quint's editorial team before publishing.