In its first reaction to the US Supreme Court’s ruling declaring President Donald Trump’s tariffs illegal, India said it is examining the developments and their possible implications.
“We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard,” the Commerce Ministry said.
“Some steps have been announced by the US administration. We are studying all these developments for their implications,” the ministry added.
What The Court Ruled
On Friday, the conservative-majority Supreme Court ruled 6–3 that a 1977 law relied upon by Trump to impose sudden tariffs on individual countries “does not authorise the President to impose tariffs.”
The ruling dealt a setback to Trump’s use of the statute to impose sweeping duties that had disrupted global trade flows.
Trump, who had nominated two of the justices who ruled against him, reacted sharply, alleging without evidence that the court had been influenced by foreign interests.
“I’m ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what’s right for our country,” Trump told reporters.
‘Tariffs Will Be Back’
Following the verdict, Trump signalled that fresh duties would be introduced.
“In order to protect our country, a president can actually charge more tariffs than I was charging in the past,” Trump said, insisting that the ruling had left him “more powerful.”
Treasury Secretary Scott Bessent, speaking at the Economic Club of Dallas, said the alternative approach “will result in virtually unchanged tariff revenue in 2026.”
New Tariffs Under Trade Act Provision
Trump subsequently invoked Section 122 of the Trade Act of 1974, which allows the US President to address certain international payment issues through surcharges and other special import restrictions.
Section 122 permits temporary tariffs of up to 15 per cent for a maximum of 150 days to tackle what the law describes as “large and serious” US balance-of-payments deficits — situations where imports significantly exceed exports.
Impact On India
In the aftermath of the Supreme Court verdict and the new tariff order, India faces a reduced tariff rate of 10 per cent, down from 18 per cent, on items imported into the United States.
After signing the revised tariff order, Trump said on social media that it was “effective almost immediately.”
According to a White House factsheet, the new duty is set to take effect on February 24 for 150 days. Exemptions will continue for sectors under separate investigations, including pharmaceuticals, and for goods entering the US under the US-Mexico-Canada Agreement.
