President Donald Trump escalated his trade offensive by raising the proposed global baseline tariff to 15%, just 24 hours after initially setting it at 10%.
This move is a direct “counter-strike” following the U.S. Supreme Court’s 6-3 ruling on February 20, which declared his previous sweeping tariffs illegal under the International Emergency Economic Powers Act (IEEPA).
The Legal Pivot: Section 122
To bypass the Court’s ruling, the President has invoked Section 122 of the Trade Act of 1974. This rarely used statute allows the executive to address “large and serious” balance-of-payments deficits.+1
- The 15% Cap: Section 122 explicitly limits the President to a maximum surcharge of 15%. By moving from 10% to 15%, Trump is utilizing the full legal ceiling allowed under this specific law.+1
- The 150-Day Clock: Unlike the previous IEEPA-based tariffs, these new duties are strictly temporary. They expire automatically after 150 days (approximately late July 2026) unless Congress votes to extend them.
- Effective Date: The new 15% rate is scheduled to take effect at 12:01 a.m. ET on Tuesday, February 24, 2026.
Key Exemptions (The “White House List”)
Despite the “global” nature of the tariff, the White House has released a fact sheet outlining significant carve-outs designed to prevent a domestic inflation spike:
| Category | Status |
| CUSMA Partners | Goods from Canada and Mexico remain exempt, provided they are trade-compliant. |
| Critical Minerals | Metals and minerals essential for the U.S. defense and energy sectors are exempt. |
| Pharmaceuticals | Life-saving drugs and ingredients not produced in sufficient quantities in the U.S. |
| Energy | Imports of oil, natural gas, and certain refined energy products. |
| Selected Tech/Auto | Specific exemptions remain for some electronics and vehicle parts to protect supply chains. |
Impact on India
For India, the 15% global rate creates a complex new calculation for exporters:
- Interim Deal Context: Earlier in February 2026, India and the U.S. agreed to an interim framework that lowered “reciprocal” tariffs on Indian goods to 18%.
- The New Effective Rate: With the 15% global surcharge added to existing baseline levels (averaging ~3.5%), India’s effective tariff rate would sit around 18.5%.
- Negligible Shift: Analysts suggest that because of the existing interim deal, the impact on India is “marginal” compared to other nations that might see their duties jump from 3.5% straight to 18.5%.
The Constitutional Conflict
The Supreme Court majority (led by Chief Justice John Roberts) held that the power to tax belongs to Congress. By immediately using Section 122, Trump is testing the boundaries of that ruling.
“Based on a thorough, detailed, and complete review of the ridiculous, poorly written, and extraordinarily anti-American decision… I am raising the 10% Worldwide Tariff to the fully allowed and legally tested 15% level.” — Donald Trump, Truth Social, Feb 21, 2026.
