‘Too soon to comment on impact of US tariff change’:Sitharaman says ‘Govt reviewing situation’; Trump admin to stop reciprocal tariff collections from tomorrow

Finance Minister Nirmala Sitharaman said on Monday, 23 February, 2026, that it was too soon to comment on the impact of the US tariff change on the Indian economy. She added that that the commerce ministry was reviewing the situation. Meanwhile, the U.S. Customs and Border Protection (CBP), the agency responsible for collecting tariffs (taxes on imports), announced it will stop collecting certain tariffs starting Tuesday, 24 February, 2026. This decision comes after the US Supreme Court declared these tariffs illegal more than three days prior, on Friday, 20 February. What Tariffs Were Involved? These tariffs were put in place under the International Emergency Economic Powers Act (IEEPA) by the Republican president Trump. The CBP will now deactivate all the tariff codes linked to these orders. Why the Delay? A key question is why the CBP continued to collect these tariffs for several days after the Supreme Court had already ruled them illegal. The CBP hasn’t explained the delay. New Tariffs Replace Old Ones Interestingly, the halt of these IEEPA tariffs was followed by the introduction of new tariffs. These new tariffs, set at 15%, are being implemented under a different legal authority of Section 122. So, while one set of tariffs is being stopped due to being ruled illegal, another set is being introduced almost simultaneously. What About Refunds? Another big question is whether companies that paid these now-illegal tariffs will get their money back. The CBP’s announcement doesn’t mention anything about refunds for importers (businesses that bring goods into the US). This leaves many businesses in limbo, unsure if they’ll be able to recover the money they paid. Other Tariffs Still in Place It’s important to note that this change only affects tariffs imposed under the IEEPA. Other tariffs put in place by the Trump administration, such as those related to national security (Section 232) and unfair trade practices (Section 301), remain in effect. Potential Impact The Supreme Court’s decision could have a significant financial impact. According to the news agency AP, the US Treasury collected over $133 billion in revenue from these IEEPA tariffs.