A pivotal US court verdict has dismantled President Trump’s reciprocal tariff regime, delivering a major win for Indian exporters. With 55 percent of India’s US-bound goods now facing duties of just 2.8-3.3 percent, trade flows are set for a resurgence.
The court’s action targets tariffs enacted under dubious legal grounds. By invalidating their use via IEEPA, judges have restored MFN status for the bulk of Indian products. These standard WTO rates, varying by industry, promise cost savings worth billions.
Delving into the judgment, Chief Justice Roberts critiqued the administration’s claim to boundless tariff authority. The ruling clarifies that Congress never endorsed IEEPA for such expansive trade weapons, curbing presidential overreach.
Yet, hurdles remain. Trump dismissed the decision as tainted by unnamed foreign forces, while the White House upholds a provisional 10 percent levy on Indian imports amid new global tariff edicts. Further measures loom in coming weeks.
Analysts urge India to leverage this moment for stronger US trade ties. Sectors dominating exports—gems, jewelry, and auto parts—could see competitive edges sharpen.
This episode highlights the fragility of unilateral trade policies in a interconnected world. As India eyes export growth amid domestic reforms, stabilized US duties foster long-term predictability and investment.