US Supreme Court Blocks Trump’s Global Tariffs: What It Means For India

Trump Tariff Case: The US Supreme Court has struck down President Donald Trump’s sweeping tariff measures, which he had pursued under legislation intended for use in national emergencies. The Court rejected one of his most controversial assertions of executive authority in a ruling with significant implications for the global economy.

The Supreme Court of the United States on February 20 invalidated President Trump’s broad reciprocal tariffs imposed under the International Emergency Economic Powers Act (IEEPA), determining that the executive branch had exceeded its constitutional powers by invoking emergency provisions to impose wide-ranging import duties.

The court ruled that the Trump administration’s interpretation of the law at issue the IEEPA, which grants Trump the power he claims to “impose tariffs” would intrude upon the powers of Congress and violate a legal principle known as the "major questions" doctrine.

The decision is widely expected to reaffirm Congress’s constitutional control over taxation and trade policy.

Trump has suggested that he may rely on alternative statutory mechanisms to preserve or reinstate trade restrictions, indicating that this legal defeat may not bring an end to tariff-related tensions.

Lower courts had previously ruled that the administration had overreached by applying sweeping “reciprocal” tariffs across a broad spectrum of imports.

Trump had warned that the United States would be “screwed” if the court invalidated the duties, arguing that billions, potentially trillions, of dollars in refunds could be owed to companies that paid the tariffs or restructured supply chains to avoid them.

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US Supreme Court rejects Trump's global tariffs: What it means for India

The US Supreme Court’s decision to strike down former President Donald Trump’s sweeping global tariffs has important legal and economic implications for India.

- Possible Relief for Indian Exporters
- Potential Refunds
- Strengthening of Bilateral Trade Talks

In February 2026, India and the United States agreed to an interim tariff framework under which reciprocal duties on Indian exports would be reduced to 18 per cent. The agreement also provides zero-duty access for selected sectors, including pharmaceuticals and certain high-value industrial goods.

The interim arrangement is expected to be formally signed in March. With the broader IEEPA-based tariffs now struck down, Indian exporters may benefit from additional relief, potentially including refunds of duties collected under the overturned measures. However, the process and timeframe for any such repayments remain unclear.

Importantly, tariffs imposed under Section 232 of the Trade Expansion Act of 1962, justified on national security grounds, are unaffected by the ruling. These measures continue to apply to products such as steel, aluminium and certain automobiles.

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India remains among the United States’ largest trading partners, with exports surpassing 86 billion dollars in the 2024-25 fiscal year.

Since mid-2025, approximately 48 billion dollars worth of Indian merchandise exports had been subjected to steep 50 per cent reciprocal tariffs, until the additional 25 per cent penal component was withdrawn earlier this month.

Expert's Take

Under the interim trade arrangement, the US had agreed to reduce reciprocal tariffs on India to 18 per cent, which will no longer remain relevant following the Court’s decision.

Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat told IANS, "Any attempt to levy such tariffs would require Congressional approval. This is likely to provide much-needed relief and a competitive boost to Indian exporters, while also paving the way for potential refunds of tariffs collected without an adequate legal basis".

The ruling marks a rare instance of the conservative-led court reining in Trump’s use of executive power. According to POLITICO, the Court, in a 6–3 decision, struck down the tariffs, calling it “a major repudiation of a core piece of Trump’s economic programme”.

Chief Justice John Roberts, writing for the majority, said: “The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history and constitutional context of that asserted authority, he must identify clear congressional authorisation to exercise it.”

Roberts added that the 1977 law Trump relied on “falls short” of the Congressional approval required.

( With Inputs from Agency)