Supreme Court Ruling Overturns Trump's Global Tariffs, Impacts India-US Trade

The US Supreme Court has delivered a significant blow to former President Donald Trump's economic agenda by overturning the global tariffs he had imposed. The 6-3 verdict, penned by Chief Justice John Roberts, declared the tariffs illegal, noting Trump's overreach of authority. This development alters the landscape of US-India trade relations by reducing reciprocal tariffs on Indian goods to 10%, as confirmed by trade experts and exporters.

In response to this ruling, Washington issued a proclamation imposing a temporary 10% import surcharge on goods entering the US, beginning February 2026. Previously, Indian goods faced higher tariffs due to additional levies related to Russian oil purchases. However, under a newly finalized interim trade agreement, these tariffs have been adjusted to 18%, with punitive tariffs now removed.

Despite the changes, certain sectoral tariffs, such as those on steel and aluminum, remain unaffected. Trump has reiterated that the trade deal with India remains intact, underscoring the ongoing bilateral trade partnership. The US was India's largest trading partner in goods between 2021-25, accounting for a substantial portion of Indian exports and imports.