3 months ago
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While the U.S. Supreme Court has struck down the reciprocal tariffs imposed by U.S. President Donald Trump connected assorted countries, including India, respective different tariffs stay successful spot that inactive person an interaction connected assorted sectors, commercialized analysts and export information show.
The Supreme Court connected February 20 recovered that Mr. Trump’s usage of the International Emergency Economic Powers Act to enforce tariffs connected different countries exceeded his authorization arsenic President, and truthful struck the tariffs down.
Impact connected commercialized deals
Trade experts person said that this volition effect successful countries that already person commercialized deals with the U.S. to re-examine them, and besides called for India to bash the aforesaid regarding its Interim Agreement that is yet to beryllium signed.
“The ruling invalidates country-specific “reciprocal tariffs” and fentanyl-linked duties imposed connected imports from large trading partners,” Ajay Srivastava, laminitis of the think-tank Global Trade Research Initiative said. “The determination efficaciously renders caller commercialized deals initiated oregon concluded by the United States with the UK, Japan, the EU, Malaysia, Indonesia, Vietnam and India one-sided and useless. Partner countries whitethorn present find reasons to dump these deals.”
The Hindu has reached retired to the Ministry of Commerce and Industry seeking a remark connected whether India would beryllium re-examining the Agreement. This study volition beryllium updated if and erstwhile a effect is received.
Other tariffs successful play
Soon aft the Supreme Court’s ruling, Mr. Trump said that helium would beryllium imposing a baseline 10% tariff connected imports from different countries nether Section 122 of the Trade Act of 1974. This conception and Act empowers the President to “address definite cardinal planetary outgo problems done surcharges and different peculiar import restrictions”, according to a factsheet issued by the White House.
Under this, the U.S. would enforce a 10% advertisement valorem work connected imports into the U.S. for a play of 150 days starting from February 24.
Steel and aluminium inactive hit
The U.S. besides has different tariffs successful place, specified arsenic those nether Section 232 of the U.S. Trade Expansion Act of 1962.
“It would request to beryllium seen however President Trump could inactive usage different laws similar Section 232 to enhance/keep tariffs for covered products extracurricular of this decision,” Krishan Arora, Partner and Indirect Tax and India Investment Roadmap Leader astatine Grant Thornton Bharat said.
Under the Section 232 tariffs, the U.S. has imposed a 50% tariff connected imports of alloy and aluminium. These tariffs volition remain, and information shows they could proceed to person an interaction connected India.
Aluminium and alloy exports, taken together, signifier the fourth-largest radical of exports for India to the U.S. Further, since electronics and pharmaceuticals are exempt from the tariffs, aluminium and alloy are the second-largest export radical connected which tariffs are applicable, pursuing precious and semi-precious stones.
Exports to the U.S. of these items fell astir 66% successful December 2025, arsenic per the latest commercialized data, successful effect to the tariffs.
De minimis tariffs besides inactive remain
The U.S. successful August 2025 suspended the ‘de minimis’ exemptions it had granted imports of items valued astatine little than $800 per idiosyncratic per day. This meant that the import of specified items, ranging from textiles to toys, cosmetics, and physics accessories, would pull the country-specific duties based connected their origin.
Following the Supreme Court’s determination connected February 20, Mr. Trump issued an enforcement bid saying that helium has determined “it is inactive indispensable and due to suspend duty-free de minimis treatment… including for shipments sent done the planetary postal network”.
This has an interaction connected India due to the fact that a fig of tiny exporters and e-commerce players utilized to usage this de minimis way to nonstop items to customers successful the U.S. duty-free.
