Key Points:
The US Court ruled that the US President lacked legal authority to impose broad reciprocal tariffs under a 1977 emergency law.
The decision reduces tariff uncertainty and could provide a competitive boost to Indian exporters
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat said, “Any attempt to levy such tariffs would require Congressional approval."
Following an administrative setback faced by President Donald Trump, the US Supreme Court’s ruling against reciprocal tariffs has brought legal clarity for India. The US Supreme Court ruled that the President of the United States did not possess the legal authority to impose wide-ranging tariffs using a 1977 emergency law.
Notably, under the interim trade arrangement, the US had agreed to reduce reciprocal tariffs on India to 18 per cent, which will no longer remain relevant following the Court’s decision.
Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat stated, “Any attempt to levy such tariffs would require Congressional approval. This is likely to give much-needed relief and a competitive boost to Indian exporters, while also paving the way for potential refunds of tariffs collected without adequate legal basis.”
In a recent development, the White House has clarified that US trading partners, including India, will pay a 10% tariff. ANI reported that Trump has signed an executive order imposing a 10% tariff on imports from all countries.
Even after the court’s ruling, the US is expected to continue relying on sector-wise tariffs under Section 232 in strategic sectors. Experts have said that this will highlight the importance for Indian exporters of advancing bilateral trade agreements to secure durable tariff certainty and stable market access.
In a major setback to President Donald Trump’s economic agenda, the US Supreme Court on 20 February, 2026 struck down most of his sweeping tariffs, ruling that he lacked authority under a 1977 emergency law to impose broad import levies on America’s trading partners across the world, including India.
The ruling marks a rare instance of the conservative-led court reining in Trump’s use of executive power. According to POLITICO, the court in a 6-3 decision struck down the tariffs, calling it “a major repudiation of a core piece of Trump’s economic program.”
Chief Justice John Roberts, writing for the majority, said: “The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”
This report is from IANS news service. NewsGram holds no responsibility for its content.
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