As the Supreme Court tossed out US President Donald Trump’s so-called ‘Liberation Day Tariffs’, here are 4 ways the ruling gives relief to India for now.
On Saturday, India’s
Commerce and Industry Ministry said that it has “noted” the US Supreme Court’s judgment on the controversial reciprocal tariffs imposed by US President Donald Trump last year. White House faced a major blow on Friday after the apex American court declared the tariffs introduced by Trump under the
International Emergency Economic Powers Act (IEEPA) as “unlawful”.
While the American court has struck down the reciprocal tariffs Trump imposed on numerous countries, including India, several other tariffs remain in place that still have the potential to impact different sectors of the Indian economy.
Soon after the court ruling, Trump announced that the US would impose a temporary
15 per cent baseline tariff for 150 days. The tariffs on all imports were imposed under Section 122 of the Trade Act of 1974.
However, there are still ways the latest Supreme Court ruling can give relief to India.
4 ways in which the judgment helps
1 Relief from excess tariffs
Before the verdict, India faced high reciprocal tariffs on many of its goods exported to the US — at times much higher than normal Most-Favoured-Nation (MFN) tariffs. With the Supreme Court’s ruling, a large portion of Indian exports that were facing elevated tariffs could now revert to standard tariff levels or face no reciprocal duty at all.
This means Indian exporters of textiles, gems and jewellery, engineering goods, consumer products, and other sectors may become more price-competitive in the US market, improving sales. While Trump said that nothing has changed in the India-US trade deal, the ruling would give relief to New Delhi.
2 Predictability returns
The US Supreme Court’s decision limits the ability of the American president to unilaterally impose sweeping tariff increases without clear statutory backing. For India and other nations, this reduces the risk of sudden, large tariff hikes — a major concern during the 2025–26 tariff cycle.
Hence, exporters will now be more prepared to deal with a blow if it is coming their way. They will now have a more stable environment for planning production, pricing, and investment decisions tied to the US market.
3 Opening the door to re-negotiate a trade deal
India and the US came to an agreement on a trade deal earlier this week that included an interim tariff framework. With tougher reciprocal tariffs now invalidated, India has more leverage to reassess or refine the terms of future trade deals based on rules-based tariffs rather than emergency executive orders.
4 No panic to shift to other suppliers
US companies (especially hospitals and retailers) now don’t need to panic-shift contracts away from Indian suppliers — something they were preparing contingency plans for. This is likely to be a quiet but crucial impact.
While the court’s ruling does not bring monumental changes. It does bring relief for India and other nations to a certain extent.
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