Trump’s tariff defeat: India and China big winners; US allies pay the price
Times of India
by TOI BUSINESS DESKFebruary 23, 2026
AI-Generated Deep Dive Summary
The U.S. Supreme Court’s ruling against President Donald Trump’s emergency tariffs has reshaped global trade dynamics, with India and China emerging as major beneficiaries while US allies face increased financial burdens. The court struck down Trump’s tariffs imposed under the International Emergency Economic Powers Act (IEEPA), deeming them illegal. This decision temporarily shifts the winners-and-losers board in international trade, with major exporters like India and China gaining significant advantages.
The ruling does not fully eliminate tariffs but instead replaces the IEEPA framework with a 15% global tariff under Section 122, which will last for 150 days unless Congress extends it. US Customs and Border Protection has halted collections of IEEPA-related tariffs as of midnight EST on Tuesday. This operational shift injects uncertainty into Trump’s trade strategy, particularly during his efforts to leverage tariffs in broader geopolitical and trade negotiations.
India and China are among the clearest winners of this legal reset. For India, the ruling provides new leverage in ongoing trade negotiations with the US. New Delhi has postponed its delegation’s trip to Washington to finalize an interim trade framework, citing the need to assess the implications of the tariff uncertainty. Similarly, China gains negotiating space ahead of a critical meeting with Trump in Beijing. The court decision undermines one of Trump’s key tools for applying pressure on China—sweeping emergency tariffs—and leaves Beijing facing a more predictable 15% global tariff instead of punitive measures.
The ruling also benefits other major exporters like Brazil, Canada, and Mexico, which were previously targeted by Trump’s IEEPA tariffs. These countries stand to gain the most mathematically, with Brazil experiencing the largest average tariff reduction at 13.6 percentage points. Additionally, regions like Vietnam, Thailand, and Malaysia are poised to benefit from the new trade regime, particularly in sectors such as clothing, furniture, and plastics.
This legal reset marks a significant shift in global trade dynamics, narrowing the gap between US allies and adversaries. While
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Originally published on Times of India on 2/23/2026