India, China Gain as US Sets 15% Global Tariff

The global trade landscape has shifted again after the US Supreme Court struck down several tariffs imposed by President Donald Trump, only for him to respond with a fresh 15% tariff on imports from all countries.

The move has triggered fresh concerns about global trade stability, with analysts suggesting that India and China may emerge relatively better off, while the United Kingdom could face higher costs.

Supreme Court Setback

In a major ruling, the US Supreme Court invalidated a series of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The court held that the use of emergency powers in this case was unlawful.

Within hours of the decision, President Trump announced a new 10% duty on imports from every country, which was later increased to 15%.

India’s Position

Before the ruling, tariffs on Indian goods had reached as high as 50% during earlier phases of the trade dispute. They were later reduced in stages — first to 25%, and then to 18% under a bilateral framework.

After the Supreme Court’s verdict, the rate reportedly dropped to 10%, before being raised to 15% under the new policy.

Despite the increase, the current 15% level remains lower than some of the previous rates faced by Indian exporters. Analysts say this places India in a relatively improved position compared to earlier tariff peaks.

China’s Response

China has said it is closely monitoring developments. Beijing urged Washington to withdraw unilateral tariff measures, reiterating that trade wars have no winners.

For China, the court decision also removed certain additional duties, including a fentanyl-linked tariff. As a result, Chinese exports to the US now face comparatively lower rates than before.

Mexico, which was also subject to fentanyl-related levies, may similarly benefit from the removal of those charges.

UK Among Hardest Hit

The United Kingdom may see a negative impact from the new 15% universal tariff.

Previously, the UK had benefited from a 10% reciprocal tariff rate, giving its exporters a competitive edge over some other nations. The uniform 15% rate removes that advantage.

According to estimates cited by trade groups, the increase could raise export costs for British firms and affect thousands of companies. UK officials have reportedly begun discussions with US authorities to seek exemptions or adjustments.

A cabinet minister said the British government is engaging with American counterparts to protect national economic interests.

EU Raises Concerns

The European Commission stated that the US must honour commitments made under last year’s trade agreement between Washington and Brussels.

The agreement had capped tariffs at 15% on most European goods. European officials said “a deal is a deal,” signalling that they expect the US to maintain its agreed terms.

Meanwhile, Bernd Lange, chair of the European Parliament’s trade committee, indicated he would propose pausing ratification of the EU-US trade agreement until greater clarity is provided on Washington’s trade policy direction.

What This Means for Global Trade

Trade experts say the Supreme Court ruling limits the use of emergency economic powers to impose sweeping tariffs. However, the new 15% global tariff suggests that trade tensions remain unresolved.

Countries that had faced steeper tariffs earlier may now see some relief, while those that previously enjoyed lower rates could face higher costs.

With policy shifts unfolding rapidly, businesses and governments are closely watching how the new tariff structure will affect supply chains, export competitiveness and global economic growth.