India Should Review US Trade Deal After SC Ruling On Trump's Global Tariff: GTRI

(MENAFN- KNN India) New Delhi, Feb 23 (KNN) The Supreme Court of the United States has struck down President Donald Trump's global tariff imposed under emergency powers, prompting the Global Trade Research Initiative (GTRI) to call on India to re-examine its trade understanding with the US.

In its ruling on February 20, 2026, the court held that Trump exceeded his authority by invoking the International Emergency Economic Powers Act (IEEPA), a 1977 law meant for national emergencies, to impose tariffs. Chief Justice John Roberts said the statute does not authorise unilateral tariff action and that no other law was cited to justify the move.

Impact on Indian Exports

According to GTRI, the removal of reciprocal tariffs will free nearly 55 per cent of India's exports to the US from the earlier 18 per cent duty. These shipments will now face only standard most-favoured nation (MFN) tariffs under global trade rules.

However, Section 232 tariffs will remain in place - 50 per cent on steel and aluminium and 25 per cent on certain auto components. Products accounting for about 40 per cent of India's export value to the US, including smartphones, petroleum products and medicines, will continue to remain exempt from US tariffs, the report noted.

Implications for Ongoing Trade Talks

The ruling comes weeks after India and the US issued a joint statement on February 7 outlining the contours of an interim trade agreement.

As part of initial steps, the US had removed 25 per cent punitive tariffs imposed on India, citing New Delhi's commitment to halt purchases of Russian oil. The tariff rate was expected to be reduced further to 18 per cent this month.

An Indian delegation led by chief negotiator Darpan Jain is scheduled to visit the US to finalise the legal text of the agreement, with both sides aiming to sign the deal by March.

GTRI said the court's decision could render several recent US trade arrangements - including those with the UK, Japan, the EU, Malaysia, Indonesia, Vietnam and India - less relevant, as the legal basis for the tariffs used as leverage has now been invalidated.

Limits on Future Tariff Action

The think tank noted that while the US administration could attempt to reimpose tariffs under Section 301 or Section 232, these mechanisms require fresh investigations and public justification, potentially delaying action and inviting further legal scrutiny.

According to GTRI, the judgment reinforces Congress's primary role in trade policy and limits the executive's ability to use emergency economic powers to impose broad tariffs, potentially reshaping future US trade actions.

(KNN Bureau)

MENAFN23022026000155011030ID1110778151