- India is studying the US Supreme Court ruling on Trump's tariffs for implications
- The court ruled 6-3 that the 1977 law does not authorise the President to impose tariffs
- India's tariff rate to US reduced from 18% to 10%, effective February 24 for 150 days
In its initial reaction to the US Supreme Court's ruling that President Donald Trump's tariffs are illegal, India said that it is studying the developments for their implications, the Commerce Ministry said.
"We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard," it said.
"Some steps have been announced by the US administration. We are studying all these developments for their implications," the ministry added.
What was the ruling?
On Friday, the conservative-majority high court ruled six to three that a 1977 law Trump has relied on to slap sudden rates on individual countries, upending global trade, "does not authorise the President to impose tariffs."
Trump, who had nominated two of the justices who repudiated him, responded furiously, alleging without evidence that the court was influenced by foreign interests.
"I'm ashamed of certain members of the court, absolutely ashamed, for not having the courage to do what's right for our country," Trump told reporters.
Tariffs will be back
"In order to protect our country, a president can actually charge more tariffs than I was charging in the past," Trump said, insisting that the ruling left him "more powerful."
Treasury Secretary Scott Bessent, addressing the Economic Club of Dallas, said the alternative method "will result in virtually unchanged tariff revenue in 2026."
Trump imposed new tariffs under Section 122 of the Trade Act of 1974, which empowers the President to address certain fundamental international payment problems through surcharges and other special import restrictions.
Section 122 authorises the US president to impose temporary tariffs of up to 15 per cent for a maximum of 150 days to address what the law describes as "large and serious" US balance-of-payments deficits-situations where imports significantly exceed exports.
How will India be affected?
India now faces a reduced tariff rate of 10 per cent, down from 18 per cent, after Trump imposed a new global levy on items imported into America following a Supreme Court verdict against his sweeping tariffs, delivering a stinging rebuke of his signature economic policy. After signing the new tariff order, Trump said on social media that it was "effective almost immediately."
The new duty is slated to take effect on February 24 for 150 days, with exemptions remaining for sectors under separate probes, including pharma, and for goods entering the US under the US-Mexico-Canada agreement, according to a White House factsheet.
(With inputs from agencies)
Track Latest News Live on NDTV.com and get news updates from India and around the world
