- Relief for India due to the decision of the US Supreme Court
- Court Breaks Donald Trump’s Tariff Policy
- Reciprocal tariff on India at 10%
US Supreme Court on Tariffs: The US Supreme Court struck down President Donald Trump’s reciprocal tariffs. New goods will now be subject to only 10% tariff instead of 18% from February 24, thus reducing import duty burden compared to earlier, say experts. The US Supreme Court, in a 6-3 majority decision, held that the various imposed broad tariffs were outside the statute’s scope.
The decision was given by Chief Justice John Roberts. This is considered a blow to Trump’s second-term economic agenda. In an announcement issued on February 20 following the Supreme Court ruling, Trump said a temporary 10% import tariff would be imposed on goods imported into the US for 150 days starting February 24, 2026. The US had imposed a 25% reciprocal tariff on India in August.
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Later, an additional 25 percent punitive duty was imposed on purchases of crude oil from Russia, bringing the total duty to 50 percent. After the new order, reciprocal duties on Indian goods will be reduced by 10 per cent, Director General of Indian Export Organization (FIEO) Ajay Sahai said. This duty will be in addition to the existing Most Favored Nation (MFN) import duty applicable in the US. For example, if a product has an MFN duty of 5 percent, the total duty would be 15 percent.
Reciprocity tariffs have now been reduced to 10 percent, research firm Global Trade Research Initiative (GTRI) said. Reciprocal duties will now apply to only 55 percent of India’s total export value to the US, while about 40 percent of goods are exempt, GTRI founder Ajay Srivastava said. However, regional tariffs of 50 percent on steel, aluminum and copper and 25 percent on some auto parts will remain in place.
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According to a report, the American Chamber of Commerce said that some tariffs imposed on goods coming from India and Brazil will be refunded after the Supreme Court struck down the Trump tariffs. According to the Business Chamber, those American importers of record who have paid the tariff directly, or a person who acquires ownership of the goods after customs clearance, will be eligible for a tariff refund. Businesses that have not paid the tariff directly are not eligible for a refund, the chamber explained. Because refund is provided only for charges imposed under ‘IEEPA’.
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