Trump Warns of “Painful” Consequences as India Pauses Trade Deal Following SC Ruling
- Editor
- February 26, 2026
- breaking news, Global Business, Politics
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Washington/New Delhi | February 24, 2026 – US President Donald Trump has issued a blistering warning to international trading partners, specifically targeting nations that seek to “backtrack” on trade agreements following a landmark US Supreme Court ruling that dismantled his primary tariff framework.
The warning comes as the India-US Interim Trade Deal, which was slated for finalization this week, has been abruptly put on hold by New Delhi. The Indian government is reportedly reassessing its negotiating position after the legal ground shifted in Washington.
The Supreme Court “Shockwave”
On February 20, 2026, the US Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the President exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose sweeping global tariffs. The court stated that the power to tax and set duties resides solely with Congress.
The ruling effectively invalidated the 50% punitive tariffs previously placed on Indian goods, which were the primary “stick” used to bring New Delhi to the bargaining table.
India’s Strategic Pause
In response to the ruling, India postponed a high-level trade mission to Washington that was scheduled to finalize the legal text of an interim deal. Under the original framework announced on February 6, India had agreed to:
- Reduce Russian oil imports to near zero.
- Lower reciprocal tariffs on US goods to 18%.
- Open agricultural markets to US dairy and crops.
However, with the 50% “emergency” tariffs now gone, Indian officials are reportedly questioning whether the concessions made under duress remain “equitable.”
Trump Strikes Back: “The Deal is On”
Unfazed by the court’s decision, President Trump immediately invoked Section 122 of the Trade Act of 1974, imposing a new 15% global tariff as a “temporary measure” to address the US trade deficit.
Speaking from the White House, Trump lashed out at countries considering a withdrawal from negotiated deals:
“Any country that wants to ‘play games’ with this ridiculous Supreme Court decision—especially those that have ripped off the USA for years—will be met with a much higher tariff, and worse, than what they just agreed to. A deal is a deal. Buyer beware.”
Despite the friction, Trump maintained that his relationship with Prime Minister Narendra Modi remains “fantastic,” but insisted that the 18% reciprocal rate agreed upon in the framework must be honored, regardless of the court ruling.
Market and Policy Implications
The sudden volatility has left Indian exporters in a state of “tariff limbo.” While the illegal IEEPA duties are being refunded, the new 15% global surcharge creates a fresh layer of uncertainty.
| Key Development | Status as of Feb 24, 2026 |
| IEEPA Tariffs (50%) | Struck Down by Supreme Court; refunds pending. |
| Section 122 Tariffs (15%) | Active (New global baseline imposed by Trump). |
| India-US Interim Deal | On Hold (New Delhi evaluating the “new landscape”). |
| March Deadline | Likely to be missed as legal teams renegotiate. |
Next Steps for India: The Ministry of External Affairs stated that a delegation led by Chief Negotiator Darpan Jain will likely visit the US next week, but only after a thorough “legal vetting” of the new US tariff authorities.
