Trade & Regulatory Updates

Trade & Tariff Update #17 - Wait Continues for Supreme Court Decision, Political Challenges to Tariff Policy and More

Written by APPA Team | Feb 10, 2026 9:31:10 PM

Wait Continues for Supreme Court Decision and Confirmation of Greenland and Canada Tariffs; Reduction of India Tariff Confirmed 

Pending the Supreme Court’s decision on the fate of the IEEPA tariffs at the center of many of President Trump’s foreign policy actions, much of his trade policy remains in limbo.  At the same time, recent tariffs announced by the Administration (Greenland Tariffs on E.U. Countries, Tariffs on Canada for a Trade Deal with China) have yet to be confirmed with any executive orders or detail from United States Customs and Border Protection.  However, on February 6 the White House issued an Executive Order confirming that effective February 7, 2026, the 25% tariff on India related to petroleum purchases from Russia will be removed.  On February 9, U.S. Customs and Border Protection (CBP) issued an official notification confirming that the IEEPA tariff has been removed effective February 7. 

Trade Agreement With India

On the same day, the White House also released a Joint Statement with India on the trade deal with that country, confirming along with other commitments that the reciprocal rate would be lowered from 25% to 18%.  We are still waiting for official confirmation from the CBP regarding the effective date.   

The agreement incorporates the following commitments:

  • India Tariff Reductions: India will reduce or eliminate tariffs on all U.S. industrial goods and many U.S. food and agricultural products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, and wine and spirits 

     

  • IEEPA Tariff Rate: The IEEPA Reciprocal tariff rate is reduced from 25% to 18% for textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, and certain machinery.  Pending conclusion of the Interim Agreement, the U.S. would remove the Reciprocal tariff on generic pharmaceuticals, aircraft parts, and other items identified in the Potential Tariff Adjustments for Aligned Partners Annex to Executive Order 14346 of September 5, 2025  

  • Section 232 Tariff Preferences: The U.S. will provide the following 232 preferences for imports from India: 
    • remove steel, aluminum, and copper tariffs imposed on certain aircraft and aircraft parts 
    • receive a preferential tariff-rate quota on automotive parts 
    • receive “negotiated outcomes” for pending the findings of the Section 232 investigation on pharmaceuticals and pharmaceutical ingredients 
  • Non-Tariff Barriers: India will eliminate import licensing procedures on ICT products and determine within six months whether it will recognize U.S.-developed or international standards – including testing requirements – for certain U.S. imports 
  • Purchase Commitments: India intends to purchase $500 billion of U.S. energy products, aircraft and aircraft parts, precious metals, technology products, and coking coal over the next five years. Both countries plan to increase trade in Graphics Processing Units and goods used in data centers.  
  • Economic Security: Both countries agree to pursue complementary actions to address non-market policies of “third parties” (China) and to cooperate on investment reviews and export controls. 
  • Future Negotiations: Both countries intend to address digital trade barriers, standards and conformity assessment procedures, and further market access commitments in negotiating the BTA. Rules of origin will be established “to ensure the agreement’s benefits accrue predominantly” towards the two countries. 

Concrete Steps to Address Threats By Iran

Also on February 6, the White House issued an Executive Order that formally authorizes the United States government to impose additional tariffs on countries conducting business with Iran.  Although tariffs are not applied automatically, the Order provides the legal framework and process for identifying affected countries and implementing the duties.  Under the Order, tariff rates will be assessed in consultation with the Secretary of the Treasury, Commerce Secretary, Homeland Security Secretary, Secretary of State and USTR.  Marking a progression from public warnings to concrete action, the order signals a clear step towards enforcement.


Growing Political Challenges to Tariff Policy  

Meanwhile, polling continues to reflect diminishing confidence in the President’s handling of the economy, raising political challenges to implementation of new tariffs that might raise consumer prices. While many still anticipate that the administration is ready to implement an alternate tariff regime should the IEEPA tariffs be struck down, political dynamics likely will limit its scope.  Moreover, it has been reported that the Administration’s trade policies have not succeeded in limiting China’s economic dominance.  It remains to be seen whether its reaction to the Court’s decision will be retreat or reinforcement, but the Administration will likely feel emboldened by the record close of the Dow Jones on Friday. 



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