India-US Trade Deal ‘No Change’ After Supreme Court Verdict, Says Trump — What Happens to 18% Tariff and Zero Duties on US Exports?

Donald Trump said the trade agreement with India will remain as it is, characterising it as a deal under which India pays tariffs while the United States does not. He stressed that the arrangement “stands as is,” indicating there are no immediate plans to revisit or renegotiate its terms. 

This came after he plans to introduce a fresh 10% global tariff under Section 122, days after the Supreme Court invalidated his earlier broad-based tariff measures. 

Responding to a question about how the Supreme Court’s ruling might affect the India-US trade deal currently being finalised, Trump said the verdict would not alter the agreement. He reiterated that under the deal, India would continue to pay tariffs while the United States would not. 

Calling it a reversal of past arrangements, Trump said, “This is a reversal for what it used to be. I think Prime Minister Modi is a great gentleman, a great man, actually, but he was much smarter than the people that he was against in terms of the United States. He was ripping us off, India. So we made a deal with India, it’s a fair deal now, and we are not paying tariffs to them and they are paying tariffs. We did a little flip.” 

Will The Landmark 6-3 Ruling Make Tariff On India Go 0%?

The court’s ruling does not invalidate all of Trump’s tariff measures. Duties imposed on steel and aluminum under separate statutory provisions remain intact. However, the judgment overturns two major categories of tariffs: the country- specific “reciprocal
Duties, which carried a 10% base rate for most nations, and the 25% levy imposed on select imports from Canada, China, and Mexico linked to fentanyl concerns. 

India had been subject to the reciprocal tariffs- initially set at 26% on Trump’s so-called “Liberation Day” in April 2025 and later revised to 18%. These levies, imposed under IEEPA, now stand invalidated, effectively removing reciprocal tariffs on most Indian exports. 

In addition, India had faced a separate 18% “penalty” tariff over its imports of Russian oil, which US officials said was helping finance the war in Ukraine. That duty was withdrawn earlier this month after India and the US reached a trade agreement. As a result, the 25% penal tariff had already been scrapped, and the 18% reciprocal tariff has now fallen following the court’s decision. Under the trade framework, the reciprocal rate was expected to be reduced to 18%, but that provision is now rendered irrelevant.

Steel, Aluminum Tariffs Remain

Indian shipments of steel and aluminum- taxed under separate legal provisions- will continue to face existing duties. 

As a result, US tariffs on Indian products do not fall to zero entirely. Instead,  they return to pre-IEEPA baseline levels, which are generally modest for many goods under the current US tariff framework, though sector-specific levies remain in force. 

What It Means For India?

 New Delhi had been in the midst of trade talks with Washington, while uncertainty over tariffs had put pressure on exporters in key sectors such as textiles, pharmaceuticals, and engineering goods.

With the IEEPA-based duties now struck down, Indian businesses are poised for immediate relief.

The ruling is also likely to trigger refund claims, as companies seek to recover billions paid under the now-invalidated tariffs. Indian importers who bore those costs may also move to reclaim their dues, though exact figures are not yet known.

While the judgment curbs Trump’s authority over trade measures, the future course of US tariff policy toward India will largely depend on the next steps taken by Congress and the White House.

Trump Slams ‘Deeply Disappointing’ Supreme Court Ruling

Donald Trump criticized the Supreme Court’s verdict, describing it as “deeply disappointing.” 

He said he is “ashamed of certain members of the court, absolutely ashamed for not having the courage to do what’s right for our country.” 

Trump praised justices Samuel Alito, Clarence Thomas and Brett Kavanaugh who dissented. 

“I’d like to thank and congratulate Justices Thomas, Alito and Kavanaugh for their strength and wisdom and love of our country, which is, right now, very proud of those justices,” he said. 

Trump particularly praised Kavanaugh, saying, “I would like to thank justice Kavanaugh for his, frankly, his genius and his great ability. Very proud of that appointment in actuality.” 

Also Read: Trump Slams ‘Deeply Disappointing’ Supreme Court Ruling, Announces New 10% Global Tariff in Fiery Attack on Liberal Justices