Indian Exporters Cheer As US Supreme Court Axes Tariffs

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NEW DELHI-With the US Supreme Court striking down reciprocal tariffs imposed by the Donald Trump administration on February 20, Indian exporters were jubilant at the news. However, around $8–9 billion worth of trade is still likely to face higher duties under national security provisions.

The US Supreme Court ruling effectively eliminates the 18 per cent reciprocal tariff agreed earlier under the India–US trade framework.

The court ruling marks a rare instance of the conservative-led Supreme Court reining in President Trump’s use of executive power. They struck down the tariffs, calling it “a major repudiation of a core piece of Trump’s economic program”.

After the US Supreme Court ruling, Trump said he has a “backup plan” for the punitive duties. As per reports, these include Section 301 of the Trade Act of 1974, which allows the US to impose duties in response to unfair trade practices by foreign countries, and Section 232 of the Trade Expansion Act, which permits tariffs on national security grounds.

Section 232 duties cover sectors deemed critical to US national security such as steel, aluminum, automobiles, timber, copper and certain machinery products.

Data shows that India exported about $8.3 billion worth of goods in Section 232 categories to the US in 2024.

This accounts for around 10.4 per cent of India’s more than $80 billion in exports to the US.(IANS)