'Too Early To Comment’: Nirmala Sitharaman Reacts To US Tariff Turmoil

New Delhi: There is a big storm in America over Trump's tariffs. The US Supreme Court on 20 February 2026 delivered a historic ruling striking down the massive global tariffs imposed by President Donald Trump. The Court, by a majority of 6-3, held that the President does not have the authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). This decision is being considered a big blow to Trump's trade policy because it has also raised the question of tariff refunds worth billions of dollars.

What does the Supreme Court's decision say?

The court clearly said that only Congress has the right to impose taxes and duties, not the President. Describing drug trafficking and trade deficit as a 'national emergency', Trump had imposed tariffs ranging from 10% to 25% on Canada, Mexico, China and other countries through IEEPA. But the court declared it unconstitutional. Chief Justice John Roberts wrote that the law did not create a tariff. After the decision, Trump called it 'terrible' and targeted the judges.

What was Trump's immediate response and new tariffs?

Hours after the decision, Trump imposed a new 10% global tariff, which was later increased to 15%. This has been imposed under Section 122 of the Trade Act 1974, which is temporary and can expire in 150 days. This has again spread uncertainty in the global market. Many countries have called this a new beginning of trade war.

What was said from India's side?

India's Finance Minister Nirmala Sitharaman gave her first reaction on Monday and said that it is too early to say anything on America's tariff changes. “It is too early to know what its impact will be on the Indian economy,” she said. The Commerce Ministry is reviewing the entire situation. The delegation will look forward to further negotiations and decisions on when to proceed.

Sitharaman also said that uncertainties keep coming and going, but the India-US deal is on the right track. We have done many deals with UK and EU. Our effort is to strengthen the Indian economy and make our products reach the global market.

What is the update on merger of public sector banks? 

The finance minister also talked about the merger of public sector banks. She said that no roadmap is ready for this yet. However, in the Union Budget 2026-27, a high-level committee on banking for 'developed India' will be formed, which will consider this issue and other aspects.

Overall, this development is bringing new challenges to global trade. India is keeping a watchful eye and does not want to take any hasty decisions. Trade partners around the world now look to the next steps