GIFT Nifty Surges as Supreme Court Strikes Down Trump Tariffs

Indian equity markets are poised for a strong opening on Friday, February 20, 2026, following a landmark ruling by the US Supreme Court that dismantled former President Donald Trump’s sweeping tariffs. The GIFT Nifty surged nearly 400 points from its intraday low, signaling robust investor confidence.

Supreme Court Ruling Details

The US Supreme Court, in a 6-3 decision, struck down the tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA). The court ruled that IEEPA does not authorize the imposition of tariffs. Justices Clarence Thomas, Samuel A Alito Jr., and Brett Kavanaugh dissented.

Impact on Global Trade

The ruling is expected to halt a significant portion of the tariffs initially announced on “Liberation Day” last year during Trump’s second term. These tariffs included a baseline duty of 10% on all imports into the United States, with additional country-specific tariffs ranging from 15% to 50%. The decision has been interpreted by investors as a potential reset for global trade tensions, triggering rallies in US equities and, subsequently, impacting markets worldwide.

India’s Position and Previous Agreements

The tariffs had previously included a 25% reciprocal tariff on India, along with an additional 25% punitive levy linked to purchases of Russian oil. The US later reduced the reciprocal tariffs to 18% after India committed to reducing direct or indirect imports of Russian oil and increasing purchases of American energy.

Earlier this month, India and the United States reached an interim trade understanding to ease tariff tensions. This agreement saw the US lower reciprocal tariffs on Indian goods to 18%, while India agreed to reduce certain tariffs and non-tariff barriers on American imports.

Looking Ahead

While the Supreme Court’s ruling dismantles the legal foundation for the sweeping levies, the US administration’s response remains uncertain. It is unclear whether new trade measures will be introduced under different legal provisions. This development arrives at a crucial time for India, as broader markets have been facing volatility due to Federal Reserve uncertainty and a slump in IT stocks.