What is Section 122 Trade Act and how is it used here?

Section 122 Trade Act allows a temporary, across-the-board import surcharge, generally for about 150 days, without new legislation. The White House cites it to justify a flat tariff on global imports, including India. Any longer application typically needs Congress, and courts can review scope and process.

Which Indian sectors are most exposed to new US tariffs?

Textiles and apparel, pharmaceuticals, gems and jewellery, chemicals, auto components, machinery, and selected metals face direct exposure. Services are not tariffed at the border, but hardware inside tech supply chains can be. Firms with strong brands and niches can pass through costs better than commodity producers.

How long could Trump 15% tariffs last?

They can run for about 150 days under Section 122 without fresh legislation. Congress could extend or reshape them, and courts might pause or limit collection. Exporters should plan for short-term disruption but track legal and policy updates that could shorten the effective window.

Could courts or the Supreme Court block the tariffs?

Legal experts say recent Supreme Court limits on unilateral actions may guide lower courts, creating a path to narrow or pause the policy. A specific Supreme Court tariff ruling is not guaranteed soon, but injunctions from lower courts could arrive faster. Outcomes remain uncertain and fact-specific.

Law and Government

February 23: India Exporters on Watch as US Tariffs Rise to 15%

ByDanny Kontos February 23, 2026February 23, 2026

Trump 15% tariffs are set to apply globally under Section 122 Trade Act for about 150 days unless Congress approves. India exporters will be in scope. Legal experts warn the measure may face court challenges after the Supreme Court limited unilateral trade actions. We expect near-term price pressure on India exports to US and possible INR volatility if buyers pause orders. Investors should track legal timelines, sector exposure, and pass-through capacity. We outline what to monitor and how to position portfolios in India now.