India Evaluates Impact of New U.S. Tariffs Following Supreme Court Ruling on Reciprocal Duties
The U.S. Supreme Court recently struck down President Trump’s 'reciprocal tariffs' imposed under the International Emergency Economic Powers Act, citing an overstep of authority. In response, the Trump administration announced a temporary 150-day, 15% baseline tariff on all imports using Section 122 of the Trade Act of 1974. India's Commerce Ministry is studying the implications, especially as aluminium and steel exports to the U.S. have already seen a 66% decline due to previous Section 232 duties. The ruling potentially renders recent trade deals one-sided, prompting calls for India to re-examine its interim trade pact.
Key Points
- The U.S. Supreme Court ruled that reciprocal tariffs exceeded presidential authority, leading to a new 15% baseline tariff under Section 122 of the Trade Act of 1974.
- India's steel and aluminium exports are significantly impacted, as they constitute the fourth-largest export group to the U.S.
- The suspension of 'de minimis' exemptions for low-value shipments further affects small Indian e-commerce exporters.
- Trade analysts suggest the ruling makes recent U.S. trade deals with partners like India and the EU appear one-sided.
Exam Facts
- Section 122 of the U.S. Trade Act of 1974 allows surcharges for fundamental international payment problems.
- Section 232 of the Trade Expansion Act of 1962 deals with tariffs based on national security grounds.
- Indian aluminium and steel exports to the U.S. fell by nearly 66% in December 2025.
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