The US Supreme Court recently ruled 6-3 that President Donald Trump's use of the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs was unconstitutional, as this power belongs to Congress. Despite this, Trump stated at a White House press conference that the US-India trade deal remains unchanged, insisting India will continue paying tariffs while the US pays none. He praised Prime Minister Narendra Modi as "a great gentleman" but noted past imbalances where India "was ripping us off," framing the deal as a fair reversal.

India's Commerce Minister Piyush Goyal announced the interim agreement is on track for a March signing, with chief negotiators meeting in Washington on February 23, 2026, to finalize the legal text. Under the February 2 framework, US reciprocal tariffs on Indian goods drop from 25% to 18%, following the earlier elimination of a 25% penalty on Russian crude purchases, reducing total duties from 50% to 25%. l Trump invoked Section 122 of the Trade Act of 1974 for a temporary 10% global tariff for 150 days starting February 24, aiming to maintain revenue streams. Legal uncertainties linger as the original 25% reciprocal tariff relied on IEEPA, now invalidated, prompting a shift to Sections 301, 232, and the new Section 122 measures. US Trade Representative Jamieson Greer plans a March visit to India for signing, while Treasury Secretary Scott Bessent claims "virtually unchanged tariff revenues" for 2026 despite more procedural hurdles in new authorities. Experts suggest India could leverage this for better terms, potentially dropping effective tariffs closer to pre-Trump MFN levels of 3.5% if negotiations harden.

This evolving scenario tests bilateral ties as of February 21, 2026, with India's exports facing a 10% baseline levy unless the deal locks in concessions soon. Trump's administration signals no retreat, but procedural delays could give New Delhi bargaining power in final talks.