Exporters cautious after SC strikes down Trump tariffs, fear fresh moves
But exporters are taking a wait-and-watch approach, fearing Washington could reimpose similar duties under another provision as they wait for more clarity from their buyers and the legal community. Trump has already said he will sign a new executive order to impose a 10% global tariff under Section 122. Section 122 tariffs will be in effect for up to 150 days unless Congress votes to extend them. He also said he would open an investigation under Section 301, which could ultimately be used to raise tariffs. This section allows the U.S. government to investigate unfair trade practices and impose tariffs accordingly.
Also read: $175 billion payback? SC flags ‘messy’ process as Trump & Co may have to return money
“We immediately apply the 10 percent provision,” he said.
Earlier in the day, the US Supreme Court ruled that Trump overstepped his authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA), invalidating country-specific “reciprocal tariffs” and fentanyl-related duties on imports from major trading partners.
However, Section 232 tariffs on steel, aluminum and some auto components remain in effect.
Exporters of precious stones and jewellery, textiles and seafood said they expected a clear picture to emerge only next week.
Kirit Bhansali, Chairman of the Precious Stone and Jewelery Export Promotion Council, said, “There is no clarity for now. Everything will become clear on Monday. A long-term legal struggle is expected to occur regarding the tariffs.”
Seafood exporters also expect greater clarity. “The US Supreme Court’s decision on tariffs is good news for us. But until we know the details, we have no idea how it will affect our exports,” said Pawan Kumar G, president of the Indian Seafood Exporters Association.
Exporters also noted that this development was unlikely to change the export order situation as a change in tariffs could only be made through an executive order.
“Importers can seek refund of taxes paid under the void regime, which could provide short-term liquidity support,” said Federation of Indian Export Organizations (FIEO) president SC Ralhan. “The decision also opens up space for more stable and constructive India-US trade interaction,” he said.
FUTURE COMMERCIAL APPLICATIONS
Chandrima Chatterjee, general secretary of the Confederation of Indian Textile Industry, said the body was trying to assess the impact of the decision on future trade.
Less than 5% of exporters were under Delivered Duty Paid (DDP) contracts and will be eligible for a refund. DDP is an international transportation contract in which the seller assumes full responsibility for the transportation of the goods until they reach their destination. Considering the possibility of some exporters’ tariffs being canceled by the courts, there are articles based on good faith in trade agreements, and these articles can be used.
Some exporters said New Delhi should now reconsider the concessions it made to the US in the trade deal and show no urgency in signing a deal.
According to a joint statement on the interim trade agreement framework issued by the two sides on February 7: “In the event of any change in the agreed upon tariffs by both countries, the United States and India acknowledge that the other country may change its commitments.”
Pankaj Chadha, chairman of engineering products export promotion body EEPC, said India has an advantage over other countries that have already signed trade agreements with the US. “We have to wait and understand what Korea, the EU, Canada and Indonesia will do before making a call,” he said. Think tank Global Trade Research Initiative (GTRI) said that following this decision, the US should remove the 25 percent reciprocal tariffs on India, after which around 55 percent of India’s exports to the US will be subject to existing tariffs only.
GTRI said the decision should prompt India to re-examine its trade agreement with the US. Under the interim trade agreement, customs duties on $30.94 billion of Indian exports were reduced from 50% to 18%, and customs duties on another $10.03 billion of exports were reduced from 50% to zero.
The Indian gem and jewelery industry was allowed zero-duty access for diamond and colored gemstone exports to the US; This was a decisive turning point that breathed new life into the industry. Customs duty on jewelery was reduced from 25 percent to 18 percent.
TWO SCENARIOS
Exporters currently think there can be two scenarios; Either everything will go back to pre-July 2025, which will be the same for every country, or the current tariff scenario where India has a slight tariff advantage.
Lalit Thukral, president of Noida Apparel Export Cluster, said there is no clarity on what will happen to goods currently exported to the US.
The diamond industry took a serious hit last year; India’s exports of cut and polished diamonds to the US, its largest export market, fell by over 60% to $1.45 billion in April-December 2025 from $3.64 billion in April-December 2024 as tariffs eroded competitiveness.
US textile and clothing imports from India decreased by 16.2% on an annual basis in December. India’s performance in the US textile and apparel market in 2025 remained virtually flat, with imports rising 0.9% year-on-year to $9.68 billion.
