In a landmark ruling that shocked global markets, the US Supreme Court on Friday struck down the bulk of sweeping tariffs imposed by President Donald Trump, marking one of the most significant judicial rebukes of his second term.
Resolution 6-3 states that the International Emergency Economic Powers Act (IEEPA) of 1977 does not allow the president to impose tariffs — a ruling that has implications for trading partners around the world, including India.
The majority held that the president did not have the authority under the Emergency Powers Act to impose a wide range of import duties on goods from nearly all of the country’s trading partners.
Chief Justice John Roberts authored the opinion, and was joined by the court’s three liberal justices and two of his conservative colleagues, Neil Gorsuch and Amy Coney Barrett. Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented from the decision.
So, will US tariffs on India reach zero?
There is a crucial distinction.
The court’s decision does not affect all of Trump’s definitions.
He leaves in place the tariffs he imposed on steel and aluminum using different laws.
But it turns its tariffs on their head in two categories: “reciprocal” tariffs on a country-by-country basis, which have ranged from a 10% baseline for most of the world, and a 25% tariff imposed on some goods from Canada, China and Mexico linked to fentanyl.
India was subject to reciprocal tariffs – at a rate of 26% announced on Trump’s so-called “Liberation Day” in April 2025, and later revised to 25%. These IEEPA-based fees have now been rescinded. This means that no reciprocal customs duties will be imposed on most Indian goods.
Apart from this, India was facing a 25% “penalty” tariff on import of Russian oil, which YS said had “fuelled the war in Ukraine”. But that was removed earlier this month when India and the US agreed to a trade deal.
This means that the “penal” tariff of 25% has already been abolished, and that the reciprocal tariff of 25% has now been abolished by the court’s decision. According to the framework of the deal, this reciprocal tariff was to fall to 18%, but the rate is now unfeasible.
Customs duties remain on some things
However, Indian exports of steel and aluminium, on which tariffs have been imposed under a separate statutory authority, remain subject to the existing duties.
Therefore, US tariffs on Indian goods do not completely reach zero; They revert to pre-IEEPA base rates, which are relatively low for many goods under the current US tariff schedule, but sector-specific tariffs remain in place.
Can Trump reinstate the tariffs?
The tariff decision also does not prevent Trump from imposing tariffs under other laws. While those restrictions have more limits on the speed and severity of Trump’s actions – as the US Congress may be involved – senior administration officials said they expect to keep the tariff framework in place under other authorities.
The White House is expected to explore alternative legal paths, including Section 232 (national security) and Section 301 (unfair trade practices) laws.
What it means for India
For India, the ruling comes at a pivotal moment.
New Delhi has been engaged in trade negotiations with Washington, and the tariff cloud has had a major impact on Indian exporters in sectors such as textiles, pharmaceuticals and engineering goods.
With IEEPA tariffs now eliminated, Indian companies are expected to get major relief in the near term.
The decision is expected to prompt companies across the country to claw back billions in tariffs that have now been voided, and Indian importers who pay these duties may pursue refund claims. Numbers were not immediately available.
The ruling represents a restriction on Trump’s authority regarding trade. But the final shape of US trade tariff policy on India will depend largely on what Congress and the White House do next.
