In a landmark ruling that sent shockwaves through global markets, the United States Supreme Court on Friday struck down the bulk of President Donald Trump’s sweeping tariffs, delivering one of the most significant judicial rebukes of his second term.
The 6-3 decision holds that the 1977 International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs — a ruling with implications for trade partners worldwide, including India.
The majority held that the President did not have the authority under the emergency powers law to impose a vast array of import levies on goods from nearly all of the nation’s trading partners.
Chief Justice John Roberts authored the opinion, joined by the court’s three liberal justices and two fellow conservatives, Neil Gorsuch and Amy Coney Barrett. Justices Samuel Alito, Clarence Thomas and Brett Kavanaugh dissented.
So, do US tariffs on India go to zero?
There is a critical distinction.
The court’s decision does not affect all of Trump’s tariffs.
It leaves in place the tariffs he imposed on steel and aluminum using different laws.
But it upends his tariffs in two categories: the country-by-country “reciprocal” tariffs, which ranged from a 10% baseline for most of the world, and a 25% tariff imposed on some goods from Canada, China and Mexico related to fentanyl.
India was subject to the reciprocal tariffs — a 26% rate announced on Trump’s so-called “Liberation Day” in April 2025, later adjusted to 25%. Those IEEPA-based levies are now invalidated. That means zero reciprocal tariffs on most Indian goods.
Apart from that, India was facing 25% “penalty” tariffs for importing Russian oil, which the YS said “fueled the war in Ukraine”. But that was removed earlier this month as India and the US agreed to a trade deal.
That means 25% “penal” tariff already gone, and the 25% reciprocal tariff now gone with the court’s decision. As per the deal framework, that reciprocal tariff was to come down to 18%, but the rate becomes infructuous for now.
Tariffs remain on some things
However, Indian exports in steel and aluminum, on which tariffs or duties were imposed under separate statutory authority, remain subject to the existing levies.
US tariffs on Indian goods therefore do not go to zero in full; they revert to pre-IEEPA baseline rates, which for many goods are relatively low under the existing US tariff schedule, but sector-specific tariffs remain in effect.
Can Trump redo the levies?
The tariffs decision also doesn’t stop Trump from imposing duties under other laws. While those have more limitations on the speed and severity of Trump’s actions — as the US Congress may be involved — top administration officials have said they expect to keep the tariff framework in place under other authorities.
The White House is expected to explore alternative legal pathways, including Section 232 (national security) and Section 301 (unfair trade practices) statutes.
What it means for India
For India, the ruling arrives at a pivotal moment.
New Delhi had been engaged in trade negotiations with Washington, and the tariff cloud had weighed heavily on Indian exporters in sectors like textiles, pharmaceuticals, and engineering goods.
With the IEEPA tariffs now invalidated, Indian businesses stand to gain significant relief in the near term.
The decision is expected to spark a refund push from companies across the country to recover the billions in now-invalidated tariffs they’ve paid, and Indian importers paying those duties may similarly pursue refund claims. Numbers were not immediately available.
The ruling marks a constraint on Trump’s power over trade. But the final shape of the US trade tariff policy on India will depend heavily on what Congress and the White House do next.
