In a serious blow to former President Donald Trump, the U.S. Supreme Court docket dominated Friday that his administration exceeded its authorized authority by imposing sweeping tariffs underneath a regulation meant for real nationwide emergencies. The choice struck down many of the disputed commerce measures and clarified the boundaries of presidential energy in financial coverage.
The courtroom held that Trump’s tariffs on items getting into america weren’t licensed underneath the 1977 Worldwide Emergency Financial Powers Act (IEEPA). Nevertheless, the ruling doesn’t eradicate all tariffs from his administration. Duties on metal and aluminum, which have been imposed underneath separate authorized authorities, stay in impact.
The choice does, nonetheless, overturn two main classes of tariffs, delivering important reduction to India’s greater than $50 billion in exports to the U.S. These embody the country-specific “reciprocal” tariffs, which had been capped at as much as 50% on Indian items (a 25% base price plus a 25% penalty tied to Russian oil imports), in addition to a 25% tariff on sure imports that the administration mentioned was meant to stress international locations to curb fentanyl trafficking.
Earlier, a February 2026 US-India interim settlement had already decreased reciprocal duties to 18% and created zero-duty carve-outs for prescribed drugs. The Supreme Court docket’s ruling now accelerates broader reduction and will open the door to refunds from the roughly $130 billion collected underneath IEEPA as of mid-December.
Trump nonetheless has the choice to aim to reinstate related tariffs utilizing completely different authorized authorities. In response to the newest information from U.S. Customs and Border Safety, IEEPA-based tariffs had generated about $130 billion in income by mid-December. Trump, nonetheless, has cited a lot increased figures, as much as $3 trillion, by together with the worth of commerce agreements negotiated throughout his administration.
India-US interim commerce settlement
The judgment got here simply days after america and India introduced a framework for an interim commerce settlement aimed toward creating extra balanced and mutually useful commerce.
Underneath the proposed deal, India agreed to chop or take away tariffs on all U.S. industrial items and on a broad record of American farm and meals merchandise. These embody dried distillers’ grains (DDGs), crimson sorghum used for animal feed, tree nuts, recent and processed fruits, soybean oil, wine and spirits, and several other different gadgets.
In return, america will impose a reciprocal tariff price of 18% on Indian-origin items underneath Govt Order 14257 (as amended). The affected classes embody textiles and attire, leather-based and footwear, plastics and rubber merchandise, natural chemical compounds, house décor gadgets, artisanal items, and sure equipment.
The U.S. has additionally indicated that, as soon as the interim settlement is absolutely finalized, it plans to take away reciprocal tariffs on a variety of extra Indian merchandise listed within the Potential Tariff Changes for Aligned Companions annex to Govt Order 14346 (as amended). These embody generic prescribed drugs, gems and diamonds, and plane components.