“We have noted the US Supreme Court judgement on tariffs yesterday. President Trump has also addressed a press conference in that regard. Some steps have been announced by the US Administration. We are studying all these developments for their implications,” the Ministry said.
This assumes significance as an Indian delegation is expected to leave for Washington on Sunday for three days of talks to finalise the legal agreement. The legal text was expected to further lower the tariffs from 25% to 18%. However, after the US court order, the US tariff would come down to 10% on India. Washington had already rolled back an additional 25% tariffs, which were imposed citing Russian oil purchases.
The US Supreme Court order is especially consequential for India, as the US, earlier this month, agreed to sign an agreement under which India agreed to purchase $500 billion worth of US products, and Washington agreed to lower tariffs on India to 18% from 50%. However, the trade agreement has not been officially signed yet. Market access-related concessions agreed under the trade deal would only be given by the Indian side when the legal agreement is signed, Indian government officials said.
Hours after the Supreme Court ruling, Trump announced a 10% global tariff on almost all imports to the US under a rarely-used provision known as Section 122. Alongside that, two other provisions – Section 232 of the Trade Expansion Act of 1962 and Section 301 of the 1974 Trade Act – that are already in use and have firmer legal grounding will remain in place, the White House clarified after the SC ruling. Section 232 of the Trade Expansion Act of 1962 on national-security grounds. These have already been deployed in the case of steel, aluminium, semiconductors and other products—and the Trump administration is looking to impose even more.
Former trade officer and founder of Delhi-based think tank GTRI, Ajay Srivastava said that the removal of the reciprocal tariffs will free about 55% of India’s exports to the United States from the 25% duty (including the 18% rate yet to be implemented under the interim framework announced in the February 6 joint statement), leaving these exports subject only to standard MFN tariffs.
“On the remaining exports, (i) Section 232 tariffs will continue — 50% on steel and aluminium and 25% on certain auto components — while (ii) products accounting for roughly 40% of export value, including smartphones, petroleum products and medicines, will remain exempt from U.S. tariffs,” Srivastava said.
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The US-India Joint Statement dated Feb 6, 2026, said: “In the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments”.
As US tariffs have changed, Srivastava said, India should use this clause to either opt out of the trade deal or delay negotiations or seek fresh terms so the trade deal looks equitable.
“The ruling should prompt India to re-examine its trade deal with the United States. After offering concessions — including reducing MFN tariffs, aligning economic policies with U.S. interests, easing regulations affecting U.S. goods, and signalling large purchases of U.S. products — India was to receive an 18% reciprocal tariff rate. Now, even without a trade deal, India, like other countries, faces a 10% tariff on most goods, rendering the agreement being negotiated useless,” Srivastava said.
Kurt M. Campbell, Chairman and Co-Founder of The Asia Group, said:” The truth is that the Trump administration anticipated these steps and was already exploring various executive authorities that can accomplish the same goals, and continue to make it clear that exports continuing at the same levels from other countries in the United States are unacceptable”.
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“Congress has already signalled its discomfort with the tariff policies. If anything, I believe that key players on Capitol Hill, both some Republicans and the entirety of the Democratic Party, will reaffirm this decision, and it will be hard to pass any legislation that in some way reconstitutes these authorities,” Campbell said.
‘Studying developments’: India’s first reaction to US court order
4 min readNew DelhiFeb 21, 2026 05:19 PM IST
A day after the US Supreme Court invalidated tariffs imposed by President Donald Trump using the International Emergency Economic Powers Act (IEEPA), the Commerce and Industry Ministry on Saturday said that it is ‘studying’ the implications of the decision.
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“We have noted the US Supreme Court judgement on tariffs yesterday. President Trump has also addressed a press conference in that regard. Some steps have been announced by the US Administration. We are studying all these developments for their implications,” the Ministry said.
This assumes significance as an Indian delegation is expected to leave for Washington on Sunday for three days of talks to finalise the legal agreement. The legal text was expected to further lower the tariffs from 25% to 18%. However, after the US court order, the US tariff would come down to 10% on India. Washington had already rolled back an additional 25% tariffs, which were imposed citing Russian oil purchases.
The US Supreme Court order is especially consequential for India, as the US, earlier this month, agreed to sign an agreement under which India agreed to purchase $500 billion worth of US products, and Washington agreed to lower tariffs on India to 18% from 50%. However, the trade agreement has not been officially signed yet. Market access-related concessions agreed under the trade deal would only be given by the Indian side when the legal agreement is signed, Indian government officials said.
Hours after the Supreme Court ruling, Trump announced a 10% global tariff on almost all imports to the US under a rarely-used provision known as Section 122. Alongside that, two other provisions – Section 232 of the Trade Expansion Act of 1962 and Section 301 of the 1974 Trade Act – that are already in use and have firmer legal grounding will remain in place, the White House clarified after the SC ruling. Section 232 of the Trade Expansion Act of 1962 on national-security grounds. These have already been deployed in the case of steel, aluminium, semiconductors and other products—and the Trump administration is looking to impose even more.
Former trade officer and founder of Delhi-based think tank GTRI, Ajay Srivastava said that the removal of the reciprocal tariffs will free about 55% of India’s exports to the United States from the 25% duty (including the 18% rate yet to be implemented under the interim framework announced in the February 6 joint statement), leaving these exports subject only to standard MFN tariffs.
“On the remaining exports, (i) Section 232 tariffs will continue — 50% on steel and aluminium and 25% on certain auto components — while (ii) products accounting for roughly 40% of export value, including smartphones, petroleum products and medicines, will remain exempt from U.S. tariffs,” Srivastava said.
Story continues below this ad
The US-India Joint Statement dated Feb 6, 2026, said: “In the event of any changes to the agreed upon tariffs of either country, the United States and India agree that the other country may modify its commitments”.
As US tariffs have changed, Srivastava said, India should use this clause to either opt out of the trade deal or delay negotiations or seek fresh terms so the trade deal looks equitable.
“The ruling should prompt India to re-examine its trade deal with the United States. After offering concessions — including reducing MFN tariffs, aligning economic policies with U.S. interests, easing regulations affecting U.S. goods, and signalling large purchases of U.S. products — India was to receive an 18% reciprocal tariff rate. Now, even without a trade deal, India, like other countries, faces a 10% tariff on most goods, rendering the agreement being negotiated useless,” Srivastava said.
Kurt M. Campbell, Chairman and Co-Founder of The Asia Group, said:” The truth is that the Trump administration anticipated these steps and was already exploring various executive authorities that can accomplish the same goals, and continue to make it clear that exports continuing at the same levels from other countries in the United States are unacceptable”.
Story continues below this ad
“Congress has already signalled its discomfort with the tariff policies. If anything, I believe that key players on Capitol Hill, both some Republicans and the entirety of the Democratic Party, will reaffirm this decision, and it will be hard to pass any legislation that in some way reconstitutes these authorities,” Campbell said.
Ravi Dutta Mishra is a Principal Correspondent with The Indian Express, specializing in economic policy and financial regulations. With over five years of experience in business journalism, he provides critical coverage of the frameworks that govern India’s commercial landscape.
Expertise & Focus Areas: Mishra’s reporting concentrates on the intersection of government policy and market operations. His core beats include:
Trade & Commerce: Analysis of India’s import-export trends, trade agreements, and commercial policies.
Banking & Finance: Covering regulatory changes and policy decisions affecting the banking sector.
Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India’s leading financial news organizations. His background includes tenures at:
Mint
CNBC-TV18
This diverse experience across both print and broadcast media has equipped him with a holistic understanding of financial storytelling and news cycles.
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