A transformative US Supreme Court decision has neutralized the specter of 18% reciprocal tariffs on Indian imports, clarifying legal boundaries on executive trade powers. By invalidating broad tariffs under 1977 emergency provisions, the court mandates congressional consent for such measures.
In a sharply worded 6-3 majority opinion, Chief Justice John Roberts rebuked unlimited presidential claims: ‘Explicit congressional approval is essential for such authority.’ This directly impacts prior interim agreements capping India-US tariffs at 18%, rendering them redundant.
Industry voice Manoj Mishra from Grant Thornton India predicts widespread benefits: ‘No more unilateral tariffs sans Congress. This could mean refunds for unjust levies and heightened Indian export edge.’
Strategic caveats remain—Section 232 might target key sectors—but the ruling galvanizes bilateral negotiations for enduring trade frameworks.
Hailed as a blow to protectionist impulses from the Trump administration, the verdict injects stability into international trade. India, as a key US partner, emerges stronger, with exporters eyeing expanded market penetration and policymakers prioritizing deal-making for sustained gains.