The US Supreme Court's ruling striking down the Donald Trump administration's global tariffs may prompt the US's trade partners to review their agreements, according to experts.
The American top court, in a 6-3 ruling authored by conservative Chief Justice John Roberts, upheld a lower court's decision that Trump's use of this 1977 law exceeded his authority. The justices ruled that the law at issue - the International Emergency Economic Powers Act, or IEEPA - did not grant Trump the power he claimed to impose tariffs.
“The decision makes recent trade deals signed or initiated by the US with partner countries look one-sided and ineffective. Partner countries may now reconsider or walk away from these agreements,” said Ajay Srivastava, founder, Global Trade Research Initiative (GTRI).
“This ruling effectively reasserts Congress’s primacy in trade policy, significantly curbing presidential latitude to weaponise tariffs and reshaping how future administrations may invoke emergency economic powers,” he added.
Earlier, three lower courts have already ruled against the administration. The US District Court for the Northern District of Illinois, on 26 April 2025, rejected the argument that IEEPA conferred sweeping tariff authority and referred the matter to trade courts. The US Court of International Trade, in a 14 June 2025 ruling, held that IEEPA does not authorise the president to levy general tariffs and that the use of emergency powers in routine trade matters violated constitutional separation of powers.
The US Court of Appeals for the Federal Circuit upheld that decision on 2 August 2025, stating that Congress had never delegated such expansive authority to the executive branch.
The Supreme Court of the United States, on 23 August 2025, agreed to hear the administration’s appeal, with justices expected to examine questions of jurisdiction and the scope of presidential power.
“The US Supreme Court’s ruling against reciprocal tariffs brings significant legal clarity and reduces tariff uncertainty for India, reinforcing limits on unilateral tariff actions," said Manoj Mishra, partner and tax controversy management leader, Grant Thornton Bharat. "Notably, under the interim trade arrangement the US had agreed to reduce reciprocal tariffs on India to 18% which shall no longer remain relevant following the Court’s decision.”
Mishra said any attempt to levy such tariffs would require Congressional approval. "This is likely to give much-needed relief and a competitive boost to Indian exporters, while also paving the way for potential refunds of tariffs collected without adequate legal basis.”
US President Donald Trump, meanwhile, signed off on a global 10% tariff "on all countries", hours after the Supreme Court order. "It is my Great Honor to have just signed, from the Oval Office, a Global 10% Tariff on all Countries, which will be effective almost immediately," he wrote on his Truth Social platform.
He also insisted tariffs previously imposed under Section 232 (National Security) and existing Section 301 (Unfair Trade) remain “in full force and effect”.
India's commerce ministry said in a statement on Saturday that the Centre had noted the US Supreme Court judgment on tariffs. “Trump has also addressed a press conference in that regard. Some steps have been announced by the US administration. We are studying all these developments for their implications.”
India interim deal, FTAs
Trump had imposed a 25% reciprocal tariff on India and levied an additional 25% as a penalty for buying Russian oil. Earlier this month, the two countries agreed to a framework for an interim agreement.
The interim deal with the US is likely to be signed in March and operationalized in April, commerce minister Piyush Goyal announced on 20 February, before the US Supreme Court's ruling.
The US scrapped the additional 25% punitive tariff imposed on India over its purchases of Russian oil and agreed to reduce the reciprocal tariff on Indian goods from 25% to 18%. The revised rate is among the lowest compared with several of India’s competing export economies, including Bangladesh, Vietnam, Malaysia, Thailand and China.
In return, India will eliminate or reduce tariffs on all US industrial goods and a broad set of agricultural and food products.
India’s free-trade agreement (FTA) with the UK, signed in July 2025, and the pact with Oman, signed in December 2025, are also expected to come into force in April, he said. The agreement with New Zealand, for which both sides concluded talks in December, is likely to be implemented in September, he said.
A joint statement announcing that a framework for the interim pact had been finalized, paving the way for legal vetting and formal signing. A three-day meeting between Indian and American officials to finalize the legal text of the interim agreement was scheduled to begin in the US on 23 February.
The signing of the interim framework would take place “very soon”, US Ambassador Sergio Gor had said on Friday, noting that negotiating teams are in active discussions. “Even this week, our teams are actively talking to each other.”
Earlier, Commerce Secretary Rajesh Agarwal had said there was a possibility of concluding the mini trade deal by March.
Negotiations for the India–US trade deal formally began in March 2025, following a joint statement issued by the leadership of both countries on 13 February 2025, during Prime Minister Narendra Modi’s visit to Washington. The visit took place shortly after Donald Trump assumed office as US President on 20 January 2025, providing fresh political momentum to bilateral trade engagement.
Subsequently, an Indian delegation led by then chief negotiator Rajesh Agarwal travelled to Washington in April to initiate formal negotiations. Since then, officials from both sides have held multiple rounds of back-and-forth discussions to narrow differences and shape the contours of the interim pact.
India’s exports to the US stood at $6.58 billion in January, down from $7.01 billion in December, reflecting some moderation amid global uncertainties and earlier tariff pressures that had affected pricing and margins.
Despite the month-on-month dip, cumulative shipments to the US during April–January rose 5.8% year-on-year to $72.46 billion, indicating resilience in trade flows. Overall bilateral goods trade between India and the US reached $116.39 billion during April–January, with India posting a trade surplus of $28.53 billion. In the same period of the previous fiscal year, total trade stood at $112.51 billion, with a surplus of $27.41 billion.