The US Supreme Court docket dominated on Friday that President Donald Trump exceeded his authority beneath the Worldwide Emergency Financial Powers Act (IEEPA) by imposing sweeping world tariffs, together with on Indian exports.
The 6-3 choice, authored by Chief Justice John Roberts, limits presidential energy over commerce, reinforcing Congress’s function and invalidating broad IEEPA-based duties, such because the 50% tariffs on India.
Following the ruling, Trump, throughout his deal with, stated, ‘India can be paying us tariffs, we won’t be paying them tariffs,’ emphasizing the unchanged India-US commerce deal.
He described relations with India as “incredible” and known as it a “honest deal” with a “little flip,” the place India pays 18% reciprocal tariffs whereas the US enjoys zero duties on its exports.
Trump vowed various measures, like a brand new 10% world tariff, insisting nothing modifications for India with context to the lately introduced India-US commerce deal.
Additionally Learn: Trump to ditch IEEPA tariffs; makes use of various authorized powers, says US Treasury Secretary Scott Bessent
India’s Achieve or Loss?
From India’s standpoint, the Supreme Court docket IEEPA tariffs choice is a significant win, slashing dangers of sudden tariff shocks on key exports like engineering items, textiles, chemical compounds, and gems.
It restores commerce predictability, probably enabling refunds for struck-down duties and boosting $55% of India’s US exports now tariff-free.
Indian companies in auto elements and prescribed drugs achieve reduction, aligning with New Delhi’s push for balanced US-India commerce.
Whereas the February 2026 India-US commerce framework stays intact, lowering US tariffs on Indian items to 18% from 50%, with zero-duty entry for prescribed drugs, gems, and high-value gadgets.
India cuts tariffs on US industrial and agricultural merchandise, unlocking $500 billion in purchases for provide chain resilience. This paves the way in which for a complete Bilateral Commerce Settlement (BTA), specializing in vitality, tech, and manufacturing amid the Trump tariffs period.
Regardless of the Supreme Court docket ruling, Trump introduced a brand new 10% world tariff as we speak, efficient nearly instantly through government order, which provides strain on non-covered exports within the India-US commerce Deal.
Trump’s Response to Supreme Court docket Ruling
Trump labeled the Supreme Court docket ruling “deeply disappointing” however insisted “nothing modifications” for the India-US commerce deal when requested about its affect. He affirmed the settlement stays on observe for signing by late March 2026.
Trump reacted defiantly to the Supreme Court docket ruling by saying an government order for a ten% world tariff beneath Part 122, capped at 150 days with out legislative renewal.
“Revenue coming in from tariffs will improve,” claimed the choice, “made my potential to impose tariffs extra highly effective,” by unlocking new pathways, stated US President Donald Trump in response to the US Supreme Court docket ruling.
Trump declared, “I’ll go in a stronger path now,” including provocatively, “I might do something I wish to do, however I can’t cost any cash,” whereas asserting his proper to impose embargoes.