‘India will be paying us tariffs, we will not be paying them tariffs,’ Trump says after US Supreme Court struck down IEEPA tariffs | World News

The US Supreme Court ruled on Friday that President Donald Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA) by imposing sweeping global tariffs, including on Indian exports.

The 6-3 decision, written by Chief Justice John Roberts, limits the president’s authority over trade, strengthens Congress’s role, and invalidates broad IEEPA-based mandates such as the 50% tariff on India.

Following the decision, Trump emphasized in his speech that the India-US trade agreement has not changed and said, ‘India will pay customs duties to us, we will not pay taxes to them.’
He described relations with India as “fantastic” and called it a “fair deal” with “a little twist”; Here, India pays 18 percent reciprocal customs duty, while the USA receives zero tax on its exports.
Trump insisted that nothing would change for India in the context of the recently announced India-US trade deal, promising alternative measures such as a new 10% global tariff.

Also Read: Trump to repeal IEEPA tariffs; US Treasury Secretary Scott Bessent said he was using alternative legal powers

India’s Gain or Loss?

From India’s perspective, the Supreme Court’s IEEPA tariff decision is a major win that reduces the risk of sudden tariff shocks on key exports such as engineering products, textiles, chemicals and precious stones.

This restores trade predictability, potentially enabling refunds for reduced tariffs and increasing the 55% of India’s US exports now duty-free.

Indian businesses operating in auto parts and pharmaceuticals are reassuring as New Delhi pushes for balanced US-India trade.

February 2026 While the India-US trade framework remains intact, the US will reduce tariffs on Indian products from 50% to 18%, providing zero-duty access to pharmaceuticals, jewelery and high-value items.

India has reduced tariffs on US industrial and agricultural products, paving the way for $500 billion in purchases for supply chain flexibility. This paves the way for a comprehensive Bilateral Trade Agreement (BTA) focused on energy, technology and manufacturing in the era of Trump tariffs.

Despite the Supreme Court ruling, Trump today announced a new 10% global tariff that will go into effect almost immediately, increasing pressure on exports not covered under the India-US Trade Agreement.

Trump’s reaction to the Supreme Court decision

Trump called the Supreme Court’s decision “deeply disappointing” but insisted “nothing has changed” for the India-US trade deal when asked about its impact. He confirmed that the agreement is on track to be signed by the end of March 2026.

Trump reacted defiantly to the Supreme Court decision by announcing an executive order for a 10% global tariff under Section 122, limited to 150 days without legislative renewal.

In response to the US Supreme Court decision, US President Donald Trump claimed, “Revenues from tariffs will increase” and said the decision “makes my ability to impose tariffs stronger” and unlocks new avenues.

In his statement, “I will now move in a stronger direction,” Trump said in a provocative manner, “I can do anything I want, but I cannot demand money from you,” while asserting his right to impose an embargo.