Dalal Street watch: What to expect on Monday as Trump raises tariffs to 15%
Times of India
by TOI BUSINESS DESKFebruary 22, 2026
AI-Generated Deep Dive Summary
Dalal Street is set to open on Monday amid fresh uncertainty following US President Donald Trump's announcement to raise temporary global tariffs from 10% to 15%. This decision comes just a day after the US Supreme Court struck down his broader tariff programme, which had been deemed unconstitutional. While markets initially welcomed the court ruling, the recent hike in tariffs has once again raised concerns about escalating trade tensions and their impact on investor sentiment.
The Supreme Court had ruled that Trump exceeded his authority by imposing wide-ranging tariffs under an economic emergency law. However, Trump quickly countered by introducing new tariffs under a separate legal provision, Section 122 of US trade law, which allows up to 15% tariffs for 150 days. This move highlights the administration's determination to maintain high import duties despite legal challenges. The unpredictability of Trump's actions has left investors nervous, particularly as he hinted at exploring other legal avenues to sustain tariffs during this period.
For Indian markets, the timing is critical, as they are already grappling with uncertainty due to US Federal Reserve policy changes and weak performance in IT stocks. Earlier this month, India and the US reached an interim trade agreement that reduced reciprocal tariffs on Indian goods to 18%. However, sectors heavily reliant on exports, such as IT, pharmaceuticals, textiles, and auto components, are likely to face pressure due to potential margin compression and fluctuating demand.
Experts caution that while the immediate impact of the 15% tariff cap may be limited, short-term volatility is expected. Nilesh Shah of Kotak Mahindra AMC noted that markets might view this as a temporary measure, but the unpredictability remains a key concern. Sudeep Shah from SBI Securities emphasized the need to monitor the $175 billion in tariffs collected over the past year and the potential implications of refund claims. This fluid situation could reintroduce volatility if new tariff actions are taken under different presidential authorities.
The broader concern lies in the uncertainty surrounding global trade relations, which have been a significant risk factor for investors. While markets may adjust to these developments, the unpredictability introduced by Trump's actions leaves analysts and investors alike on high alert. The situation underscores the delicate balance of international trade policies and their far-reaching economic implications.
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Originally published on Times of India on 2/22/2026