India reviews impact after US Supreme Court blocks Trump tariffs. Photo: ANI.
The Ministry of Commerce and Industry on Saturday said the government is closely examining recent developments related to US tariffs and assessing their potential implications for India, following a major legal setback to tariff measures introduced by the administration of Donald Trump.
The response came after the Supreme Court of the United States struck down the reciprocal tariffs imposed by the Trump administration. In a 6–3 verdict delivered by the full nine-judge bench led by Chief Justice John Roberts, the court ruled that the president could not impose tariffs under the International Emergency Economic Powers Act (IEEPA) of 1974 without congressional approval.
In an official statement, the commerce ministry acknowledged the judgement and subsequent announcements by Washington.
“We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard,” the ministry said.
“Some steps have been announced by the US administration. We are studying all these developments for their implications,” it added.
The US top court’s decision has created uncertainty over tariff measures affecting India, particularly as New Delhi and United States are close to finalising the text of an interim trade agreement.
Earlier this month, Washington had announced an 18 per cent tariff on Indian goods, reduced from a previously proposed 50 per cent rate. However, the Supreme Court ruling has raised questions about whether those tariffs remain valid.
The judgement effectively removes the legal basis for the 18 per cent reciprocal tariff imposed on India, with the court holding that tariffs could not be introduced in peacetime under the five-decade-old IEEPA law.
Soon after the ruling, Trump signed an order mandating a new 10 per cent tariff on imports from all countries, including India, to replace the measures struck down by the court.
To implement this move, he invoked Section 122 of the Trade Act of 1974, a provision that has never previously been used. The law allows US presidents to impose tariffs of up to 15 per cent for 150 days to address trade imbalances with any country, after which congressional approval is required.
The newly announced 10 per cent tariff is scheduled to take effect on February 24.
When asked about the tariff rate applicable to India, Trump stated that it would remain at 18 per cent, as agreed earlier. However, the White House later clarified that, for the time being, India would face a 10 per cent tariff.
“All countries with trade agreements with the US now drop to a 10 per cent tariff rate temporarily,” a White House official said.
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
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