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, 6 October 2026

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News UpdateGeopolitics

After the tariff ruling, Washington's 150-day clock is running on India's trade

The Supreme Court struck down the emergency tariffs in February. What replaces them runs on borrowed time, and Indian exporters are waiting to see whether the money already collected comes back.

By Dmitri Volkov · Geopolitics Analyst, Geopolitics

2 min read

The dome of the United States Capitol, where the tariff clock was set running.
The dome of the United States Capitol, where the tariff clock was set running.Photograph: Diliff (opens the source page in a new tab), CC BY 2.5. Photograph of the subject reported.

Section 122 allows a temporary 15% levy for 150 days. India's refund claims run against the same clock. — Illustration: NOT SCRIPTED

The short version

  • The Supreme Court invalidated the tariffs imposed under the International Emergency Economic Powers Act in February 2026.
  • The replacement tariff rests on Section 122 of the Trade Act, which caps an emergency levy at 15% and limits it to 150 days.
  • A law firm analysis of the India exposure says duties collected on the 25% rate between August 2025 and February 2026 have been rescinded, raising the question of refunds.

Two weeks after the Supreme Court struck down the tariffs imposed under the International Emergency Economic Powers Act, the tariff question in Washington has not gone away. It has changed shape. The emergency instrument is gone; what remains is a narrower statutory authority with a hard expiry date and a lower ceiling.

Under Section 122 of the Trade Act of 1974, the president may impose a temporary global tariff of up to 15% without the ordinary process, for a maximum of 150 days. It is a bridge, not a policy. Once those days are used, Congress has to decide what comes next, and the administration has to defend the replacement on the record.

Where India stands

  • A law firm analysis records that the additional 25% duty applied to Indian goods from August 6, 2025 until February 7, 2026, and that the measure has now been rescinded.
  • Duties already collected under a later-invalidated instrument are the subject of refund claims, with the mechanics still to be worked out.
  • A Congressional Research Service note published on February 23 sets out the legal mechanics of the ruling and the replacement authority.

That is the part with a direct line to an Indian balance sheet. Exporters who priced contracts against the 25% rate are now negotiating against a different number, and importers who paid the duty at the border are looking for the same rupees back.

The United States Trade Representative published its 2026 trade policy agenda on March 2, one day before this article was compiled. The release is the administration's own statement of intent; it does not settle the refund question, and it does not extend Section 122.

Sources — 3 references

These are the published sources this article was established against. NOT SCRIPTED wrote the text above; the sources below are credited to their own publishers.

  1. Office of the United States Trade Representative (opens in a new tab)Official release · 2 Mar 2026
  2. Congressional Research Service (opens in a new tab)Official release · 23 Feb 2026
  3. Norton Rose Fulbright (opens in a new tab)Publication

About the byline

Dmitri Volkov

Geopolitics Analyst · Geopolitics · New Delhi

Great-power competition, defence procurement and India's neighbourhood.

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