After US Supreme Court blocks Trump tariffs, does trade deal with India still matter?

New Delhi: A legal decision in the US has raised questions regarding trade relations with India. The US Supreme Court struck down Trump’s reciprocal tariffs, raising questions in New Delhi about the latest trade deal with Washington. Analysts are now questioning whether the earlier agreement still carries legal or practical weight.

Earlier this month, President Trump announced an interim trade agreement with India that reduced tariffs on Indian goods from 50 percent to 18 percent. He also claimed that India had agreed to stop buying Russian oil. It was divided into a 50 percent tariff, a 25 percent reciprocal tariff, and a 25 percent customs duty on Russian oil purchases.

After the Supreme Court declared Trump’s global tariffs illegal by a 6-3 vote on Friday, February 20, Trump immediately moved to use another law, Section 122 of the 1974 Trade Act, to impose a new 10 percent global tariff, which he later increased to 15 percent. It has been determined that this new tariff will be valid for 150 days, starting from February 24.

At the press conference held at the White House after the decision, the president responded to questions about the India trade agreement and said, “Nothing will change in the agreement with India and payments will continue.”

Political reactions and legal concerns

The Supreme Court decision eliminated the legal basis for old tariffs imposed on India. Opposition leaders, including India’s Congress party, questioned why the deal was made without waiting for a court decision. On Saturday, Congress called for a review of the interim trade agreement and its terms, arguing that it was rushed and is now unworkable.

Senior Congress leader Jairam Ramesh said in a post on

While the Congress termed the agreement a betrayal, Union Commerce Minister Piyush Goyal and Agriculture Minister Shivraj Singh Chouhan reiterated that the agreement protects India’s agriculture and dairy sectors.

Former Finance Minister P. Chidambaram also questioned the impact of the Supreme Court order and added that India had already made many concessions from the US without mutual benefit.

Global implications and need for review

International relations expert Brahma Chellaney said India agreed to the core trade agreement even though it knew the legal validity of the tariffs was still under review by the US Supreme Court. “Trump’s tariffs will continue to be at the center of his agenda, as evidenced by the new 10 percent global tariff that was later increased to 15 percent, even though the court has weakened his position,” he said.

He also emphasized that the Indian government left the advantages on the negotiating table and said the latest trade agreement continued this model. He noted that the agreement includes commitments beyond trade, such as gradually reducing oil imports from Russia and restricting oil transfers in India’s maritime zones for ships under Western sanctions.

Reuters reports on February 16 suggested that India seized three Iran-bound oil tankers to enforce US sanctions; However, Iranian news agency Fars denied the tankers’ connection with the Islamic Revolutionary Guard Corps.

According to a BBC report, under the new Section 122 tariff, countries with trade agreements with the US, including India, the UK and members of the European Union, will face a 10 percent global tariff, which Trump increased to 15 percent. According to a White House official, the report included the following statements: “The US administration expects these countries to continue to comply with the concessions agreed upon within their trade arrangements.”

Experts in India said the Supreme Court decision will affect the India-US trade deal. They explained that Trump promised to reduce the reciprocal tariff from 25 percent to 18 percent, but the court decision made the old tariff illegal. The new 15 percent global tariff will now apply temporarily, regardless of any free trade agreement.

They also clarified the impact on Indian exports, adding that around 55 per cent of India’s exports to the US face a reciprocal tariff of 25 per cent, which will now be replaced by a global tariff of 15 per cent. For the remaining 45 percent, the USA had already given exemptions for products such as smartphones, medicine and oil. Equally high tariffs will be imposed on other products such as steel, aluminum and some auto components.

The Supreme Court ruled that imposing the old tariffs was illegal on the grounds that the U.S. Congress had the power to impose them. Experts said the only legal basis for the India-US agreement was the joint statement on February 6. Any changes to tariffs by either side will allow the other country to respond. India needs to re-evaluate the deal as US tariffs have changed.

They added that the 15 percent global tariff announced by Trump was also weak and likely to face legal challenges. They noted that Section 122 allows such tariffs only for 150 days and under conditions of balance of payment issues that do not currently exist in the United States.

Experts recommended that India review the trade agreement, saying, “The previous agreement is no longer valid. With so much uncertainty regarding US tariffs, India should step back and observe the developing situation before making further commitments. A pause in the trade agreement is necessary.”

India’s Ministry of Commerce issued a statement confirming that it was reviewing the Supreme Court decision and the new developments announced by the US administration. The statement said, “We are investigating the impact of all these developments on the trade agreement with the USA.”