US courts have delivered a body blow to President Trump’s trade arsenal by voiding reciprocal tariffs, slashing duties on 55 percent of India’s exports to America to 2.8-3.3 percent. This shift, per expert analysis, unlocks substantial savings for exporters.
The invalidated measures relied on IEEPA, but the judiciary found no statutory support for their ‘reciprocal’ scope. Consequently, standard MFN rates—WTO defaults averaging 2.8-3.3 percent by sector—reassert control over most Indian shipments.
Breaking down the ruling, Chief Justice Roberts rebuked assertions of unchecked executive tariff power. Absent explicit legislative intent, IEEPA cannot greenlight such actions, though narrower options persist.
Undeterred, Trump alleged external meddling in the bench’s thinking. The administration maintains a temporary 10 percent tariff on India via fresh executive orders, with more possibly inbound.
For New Delhi, the cue is clear: recalibrate US trade strategies. Key industries, including organics and electronics, poised for gains, could fuel economic momentum.
This legal pivot not only eases immediate pressures but reaffirms rule-based trade over whimsy. As India navigates global headwinds, fortified US market access promises sustained export vitality and diplomatic leverage.