US Tariff Ruling Feb 2026: Impact on India Market

On 20 FEB, the US Supreme Court’s latest US tariff ruling news became the major trigger for not only the global market but also the Indian markets as well. The Gift Nifty increased by more than 400 points.

Due to this US tariff ruling Supreme Court decision on tariffs, the court has struck down reciprocal tariffs that were imposed by the Donald Trump administration.

Let’s see what exactly happened and how it will impact India’s markets.

US Tariff Ruling Supreme Court: What exactly had happened?

In this US tariff ruling, the Supreme Court said that under the Trade Act of 1974, the reciprocal tariffs of the Trump administration are much more than within presidential authority. 

According to the US Supreme Court, imposing such broad tariffs without any proper legislative backing was not valid.

But as the decision was taken, Trump had approved a 10% global tariff on certain countries. Due to this, fresh uncertainty was created in markets.

As Livemint reported, the previously imposed tariffs generated nearly $175 billion in collections, and questions are now being raised over their repayment and legal status.

What's The Impact Of US Tariff Ruling On Indian Stock Market?

Market experts believe that this US tariff ruling news has brought relief for Indian exporters, particularly companies with strong exposure to the US market.

Soon after the US tariff news came, Gift Nifty rose sharply higher during the session, rising close to 400 points at its peak, before easing and ending with a premium of about 200 points over the Nifty 50’s closing level.

Gift Nifty is indicating a positive start for Indian markets. Now there is a possibly positive outcome for the BSE Sensex and Nifty 50. 

Why the US Tariff Ruling is Important for Exporters?

The US tariff ruling Supreme Court decision is possibly a major relief for Indian exporters. According to the sources, there was much more pressure on Indian exports earlier due to the Trump administration.

After the US tariffs ruling news, the ground reality for exporters is likely to improve as:

• Previously, 18% reciprocal tariff was there, which is now eliminated

• The 55% exports going from India to the US will now have a 10% tariff

• Due to this, the price competitiveness of Indian products will be improved. Also, fresh export order chances might be improving now.

Overall, this US tariff ruling could be positive for the companies which are into export-related activities.

Which sectors are likely to have more gains?

The sectors which have strong US revenue exposure are possibly benefited more. Here are some sectors:

• IT services

• Pharma exporters

• Auto components

• Textiles & apparel

• Gems & jewellery

• Specialty chemicals

Impact of US Tariffs Ruling on Gold and Silver 

After the US tariff ruling news, strong support was possibly seen for gold and silver. Silver and gold are known as safe-haven assets during global market uncertainty. 

Therefore, precious metals got stability due to trade policy and geopolitical tensions.

International market price of Gold and Silver

On 19th Feb, precious metals were relatively stable in the international market.

After the US tariff ruling news on Feb 20th, the gold and silver got changes of 0.60% and 2.90%. This is likely due to global uncertainty. The silver increased more, though it might be due to industrial usage.

Changes In The Indian Market 

The Indian market was obviously impacted by the international market. Therefore, changes of 0.06% and 3.20% were seen in gold and silver.

What effect can the IPO market have?

After having clarity from US tariff news, the support was not only limited to the secondary market, but the IPO market also got possibly.

When volatility is in control in the secondary market, and FIIs' participation has improved, then the IPO market possibly get better confidence level.