The fog of uncertainty over US tariffs on Indian goods has lifted, thanks to a pivotal Supreme Court verdict limiting presidential authority on reciprocal duties. Indian industry leaders are breathing easier, with the court’s rejection of one-sided 18% tariff threats under emergency laws.
Delivering the opinion, Chief Justice John Roberts underscored that presidents cannot wield ‘extraordinary power’ for boundless import taxes without Congress’s clear nod. The 1977 statute invoked for these measures fails constitutional muster, the court ruled 6-3.
Grant Thornton India’s Manoj Mishra explained the implications: ‘Presidential tariff moves are now off-limits without legislative backing. Indian exporters gain a competitive edge, potential refunds, and reduced risks.’ The interim US-India pact slashing tariffs to 18% is effectively voided.
Looking ahead, experts warn of possible Section 232 tariffs in sensitive areas like steel. This underscores the urgency for a comprehensive US-India trade deal to ensure stable duties and reliable access.
Trump-era policies take another hit, as this ruling prioritizes legislative oversight in trade wars. For India, it’s a timely boost amid global supply chain shifts, fostering confidence in transatlantic commerce and encouraging bolder export strategies.