Indian exporters celebrated as the US Supreme Court invalidated reciprocal tariffs imposed by the Trump administration. Despite this, trade worth $8-9 billion may still face increased duties under national security regulations. The ruling eliminates the 18% reciprocal tariff agreed upon in the India–US trade framework.
Section 232 duties, crucial for US national security in sectors like steel, aluminium, automobiles, timber, copper, and specific machinery products, remain in effect. In 2024, India exported goods worth $8.3 billion falling under Section 232 categories to the US, constituting about 10.4% of India’s $80 billion-plus exports to the US. The US government hinted at exploring alternative methods to enforce trade restrictions.
President Trump mentioned having a “backup plan” for punitive duties post the US Supreme Court decision. This plan may involve utilizing trade statutes like Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act to impose tariffs in response to unfair trade practices and on national security grounds, respectively. The conservative-led court’s 6-3 decision against the tariffs signifies a rare instance of curbing Trump’s executive power.
