WASHINGTON/NEW DELHI — The Supreme Court’s ruling concluded that the IEEPA (1977) does not grant the President the power to bypass Congress to impose broad tariffs. Despite this massive legal blow—and the potential for $175 billion in refunds to US businesses—the Trump administration has already moved to a new legal frontline.
The Immediate Counter-Move: Section 122
To bypass the court’s ruling, President Trump signed a fresh executive order on Friday evening:
- New 10% Baseline: A 10% global tariff has been reimposed under Section 122 of the Trade Act of 1974, which allows for temporary import surcharges to deal with large balance-of-payments deficits.
- National Security Tariffs: Trump confirmed that all existing Section 232 (National Security) and Section 301 (Unfair Trade Practices) tariffs remain in effect, as they were not covered by the SCOTUS ruling.
- Fresh Investigations: The administration has launched new Section 301 probes into several countries to provide a “durable” legal basis for higher rates.
The India Impact: “The Deal Stands”
Despite the legal chaos, President Trump clarified that the India-US Trade Framework announced in early February remains the priority.
- Redundant but Relevant: While the specific executive orders linked to the IEEPA are now void, the “deal” involves India restricting Russian oil imports and buying $500 billion in US goods over five years in exchange for lowered tariffs (from 25% down to 18%).
- Shifting Exports: Throughout 2025, India successfully cushioned the blow of US tariffs by redirecting exports. Shipments to China surged over 33%, while exports to Spain grew by a staggering 180%.
- Market Reaction: The ruling provided a slight boost to the Indian Rupee, as the Bloomberg Dollar Spot Index dipped 0.2% on the news of US policy uncertainty.
Financial Fallout: The Refund Crisis
| Metric | Impact Detail |
| Total Tariffs Collected | Estimated between $129B and $175B since April 2025. |
| Refund Status | US businesses have begun filing lawsuits; early filers are expected to be paid first. |
| Cost to Consumers | A NY Fed analysis found US consumers and small businesses paid 90% of the 2025 levies. |
| Treasury Yields | 10-year notes rose to 4.086% as investors weighed the loss of federal revenue. |
Quotes of the Day
President Donald Trump: “I am ashamed of certain members of the court… they are fools and lap dogs for the RINOs. This ruling is an embarrassment to their families.”
Congresswoman Sydney Kamlager-Dove: “These arbitrary tariffs created chaos for small businesses and were weaponized to torpedo relationships with close partners like India.”