Trump tariffs struck down by US Supreme Court: What it means for India - 55% exports to America free from 18% duty
Times of India
by TOI BUSINESS DESKFebruary 20, 2026
AI-Generated Deep Dive Summary
The US Supreme Court has invalidated former President Donald Trump’s reciprocal tariffs, a significant blow to his trade policies. The court ruled that these tariffs, including those imposed on India, were illegal as they required congressional approval. This decision directly impacts 55% of India's exports to the US, which will now be free from the previously imposed 18% duty. The ruling also invalidates fentanyl-linked tariffs and country-specific reciprocal duties on major trading partners.
The decision effectively nullifies recent trade deals struck by the US with countries like the UK, Japan, and India. Under these agreements, the US had agreed to reduce or remove certain tariffs. However, without congressional approval, these deals are now one-sided and may be reevaluated. For India, this means that while 55% of its exports will no longer face additional tariffs, other categories such as steel, aluminum, and auto components will still be subject to Section 232 tariffs.
The ruling brings legal clarity for Indian exporters, reducing tariff uncertainty and providing a competitive edge in the US market. While 40% of India's export value, including smartphones and medicines, remains exempt from US tariffs, the remaining exports face ongoing Section 232 duties. This outcome is expected to boost Indian trade relations with the US and potentially pave the way for refunds of previously collected tariffs deemed unconstitutional.
The Supreme Court’s decision highlights the need for Congress to play a more active role in overseeing future trade agreements. Analysts suggest that this ruling could introduce new dynamics into ongoing negotiations, particularly for the interim India-US trade deal set to be finalized soon. The positive market response, including gains in US equities and India's Nifty index, reflects optimism about the potential economic benefits.
Overall, the Supreme Court’s ruling underscores the importance of balanced trade policies and the limitations on unilateral tariff actions. This development not only impacts India but also raises questions about the future of US trade agreements with other countries. As the Trump administration considers alternative approaches, stakeholders will closely
Verticals
worldasia
Originally published on Times of India on 2/20/2026