Market veteran Deepak Shenoy on Saturday commented on the Trump tariffs and opined that the US duties are now illegal because India has not yet signed a trade deal.
In a post on X, Shenoy said that India will now face a reduced tariff of 10% after US President Donald trump signed an executive order earlier Friday (US time) to counter the Supreme Court’s decision.
“Trumps tariffs now illegal, India hasn’t yet signed a deal, and we go back to 10%,” the Capitalmind founder said.
His comments come after Trump imposed the 10% global tariff, following the Supreme Court’s verdict that the US tariff imposed by the President was illegal and went beyond his powers.
Deepak Shenoy further called the US untrustworthy, advocating for a move to manufacture in India for India.
“This is still a waste, like with shrimp just move those few exports to other countries and move to make for India in India. America isn’t worthy of trust at this point,” he said.
How much tariff will India have to pay?
The Supreme Court on Friday ruled 6-3 that the Trump administration exceeded its legal authority to impose tariffs beginning in February 2025 under the International Emergency Economic Powers Act (IEEPA) of 1977.
However, the White House later released a fact sheet saying “tariffs will continue” and are a “critical tool” for Trump to “protect American businesses and workers, reshore domestic production, lower costs, and raise wages”.
With the US Supreme Court striking down President Donald Trump’s global tariffs and Washington issuing a new order imposing a temporary 10% import surcharge, Indian goods will now face only a 10% reciprocal levy from February 24, 2026.
For instance, if a product faces a 5% duty in America, an additional 10% will be imposed now, taking the effective duty to 15%. Earlier, this was 5% plus 18%.
Trump’s proclamation, dated February 20, said: “I impose, for a period of 150 days, a temporary import surcharge of 10% ad valorem on articles imported into the United States, effective February 24, 2026” at 12:01 am Eastern Standard Time.
What Donald Trump said on tariffs
Donald Trump has argued that the deets of the Interim Trade Agreement that India signed with the US 18 days ago will remain in place, meaning that the 18% tariff will remain.
Answering questions at the White House following the SC’s order, the US president said there is “no change” in the trade deal.
“Nothing changes. They’ll be paying tariffs, and we will not be paying tariffs. So, the deal with India is that they pay tariffs. This is a reversal for what it used to be, as you know, India, and I think Prime Minister Modi is a great gentleman, a great man, actually, but he was much smarter than the people that he was against in terms of the US, he was ripping us off. So we made a deal with India,” he told reporters.
Trump called the Supreme Court’s decision shameful, and signed an executive order under Section 122 of the Trade Act of 1974, imposing a 10% global tariff. These temporary tariffs are allowed to be in place for 150 days to address balance-of-payments deficits, after which they require a Congress approval.
