Trump Says India-US Trade Deal Unchanged After Supreme Court Ruling
U.S. President Donald Trump stated on Friday that there will be no changes to the India-U.S. trade agreement, despite the Supreme Court of the United States striking down his previous reciprocal tariffs. When asked about the impact of the ruling, Trump remarked, “Nothing changes, they’ll be paying tariffs, and we will not be paying tariffs.”
In a 6-3 decision written by Chief Justice John Roberts, the court invalidated Trump’s worldwide tariffs, which had been imposed under the International Emergency Economic Powers Act (IEEPA). The ruling clarified that the 1977 law does not grant the president the authority to impose tariffs, emphasizing that the power to regulate imports does not include the power to levy tariffs.
Trump Announces New 10% Tariff
Expressing dissatisfaction with the ruling, Trump labeled it as “terrible” and announced a new 10% global tariff under a different legal provision. Nevertheless, he insisted that the India-U.S. arrangement remains unaffected. “The deal with India is that they pay tariffs. This is a reversal from what it used to be,” Trump stated, adding that Prime Minister Narendra Modi is “a great gentleman.” He further remarked, “We made a deal with India, it’s a fair deal now… We did a little flip.”
A White House official confirmed that the newly announced 10% global tariff will apply to India until another legal authority is invoked. The official also emphasized that Washington expects all trade partners to strictly adhere to agreed trade terms.
Tariffs at the Center of Legal Dispute
Tariffs have been a central element of Trump’s economic and foreign policy. He has consistently argued that such measures help address trade imbalances; however, the Supreme Court ruling reaffirmed that, under the U.S. Constitution, the authority to levy taxes and tariffs lies with Congress and not the president.
Interim India-U.S. Trade Pact Likely by April
Meanwhile, India’s Commerce and Industry Minister Piyush Goyal indicated that an interim trade agreement between India and the United States is likely to be signed in March and implemented by April. Chief negotiators from both nations are scheduled to meet in Washington starting on February 23 for a three-day round of discussions to finalize the text of the agreement.
Under the proposed framework, the U.S. is expected to reduce reciprocal tariffs on Indian goods from 25% to 18%. Additionally, the previously imposed 25% punitive tariffs on Indian imports of Russian crude oil have already been removed, providing significant relief to Indian exporters.
U.S. Trade Representative Jamieson Greer is expected to visit India in March to sign the deal formally. Goyal expressed optimism that the Trump administration would soon issue an executive order to formalize the tariff reduction to 18%, marking a significant development in India-U.S. trade relations.
