Reciprocal tariffs are gone, but several other U.S. tariffs are still hitting Indian exporters

U.S. tariffs remain on Indian exports despite the Supreme Court striking down reciprocal tariffs, affecting various sectors and trade deals.

While the U.S. Supreme Court has struck down the reciprocal tariffs imposed by U.S. President Donald Trump on various countries, including India, several other tariffs remain in place that still have an impact on various sectors, trade analysts and export data show.

The Supreme Court on February 20 found that Mr. Trump’s use of the International Emergency Economic Powers Act to impose tariffs on other countries exceeded his authority as President, and so struck the tariffs down.

Trade experts have said that this will result in countries that already have trade deals with the U.S. to re-examine them, and also called for India to do the same regarding its Interim Agreement that is yet to be signed. 

“The ruling invalidates country-specific “reciprocal tariffs” and fentanyl-linked duties imposed on imports from major trading partners,” Ajay Srivastava, founder of the think-tank Global Trade Research Initiative said. “The decision effectively renders recent trade deals initiated or concluded by the United States with the UK, Japan, the EU, Malaysia, Indonesia, Vietnam and India one-sided and useless. Partner countries may now find reasons to dump these deals.”

The Hindu has reached out to the Ministry of Commerce and Industry seeking a comment on whether India would be re-examining the Agreement. This report will be updated if and when a response is received. 

Soon after the Supreme Court’s ruling, Mr. Trump said that he would be imposing a baseline 10% tariff on imports from other countries under Section 122 of the Trade Act of 1974. This section and Act empowers the President to “address certain fundamental international payment problems through surcharges and other special import restrictions”, according to a factsheet issued by the White House.