India weighs impact after US Supreme Court tariff ruling reshapes trade talks
India weighs impact after US Supreme Court tariff ruling reshapes trade talks
India's commerce ministry notes the ruling but signals uncertainty over the interim trade deal with Washington as lingering US tariffs continue to hit exporters.
The US Supreme Court has struck down the reciprocal tariffs that President Donald Trump imposed on several countries, including India, in a February ruling that said the use of the International Emergency Economic Powers Act went beyond the President’s authority. The decision comes even as Washington introduced a temporary 150-day baseline tariff of 10% on all imports starting February 24 under a separate section of the Trade Act of 1974. The combination of the ruling and the new baseline tariff creates a complex backdrop for India’s trade posture and its ongoing talks with the United States.
Trade analysts noted that the ruling could push countries with existing US trade deals to reexamine those agreements, while India’s own interim deal with Washington remains unsigned and subject to reevaluation. Ajay Srivastava, founder of a global trade think-tank, said the decision effectively renders recent US trade deals with partners like the UK, Japan, the EU, Malaysia, Indonesia, Vietnam and India somewhat one-sided and potentially useless, prompting partner nations to reconsider terms.
India’s Commerce and Industry Ministry acknowledged the Supreme Court judgement but did not clarify how it would affect the country’s interim agreement with the United States. The ministry said it had “noted” the judgement, signaling that a formal position would depend on further policy steps and negotiations.
Even with the reciprocal tariffs struck down, several other US tariffs continue to hit Indian exporters. The United States has over the past year imposed duties on steel and aluminium as well as goods valued under $800, measures that remain in place and affect both large manufacturers and smaller suppliers here. This ongoing landscape means India must weigh the potential benefits of any new or revised interim terms against the continuing pressures from these broader tariff measures.
Looking ahead, New Delhi is tracking the developments closely and preparing for possible reexamination of the interim trade framework with Washington. The objective, officials say, is to secure terms that protect Indian industry while ensuring continued access to vital US markets. The coming weeks are likely to shape how aggressively India pursues adjustments to its engagement with the United States in the wake of the court ruling and the baseline tariff policy.
