New Delhi: A legal decision in the United States has raised questions about trade ties with India. The US Supreme Court struck down Trump’s reciprocal tariffs, raising questions in New Delhi about the recent trade deal with Washington. Analysts are now questioning whether the earlier understanding still holds any legal or practical weight.
Earlier this month, President Trump had announced an interim trade deal with India, reducing tariffs on Indian goods from 50 percent to 18 percent. He also claimed that India agreed to stop buying Russian oil. The 50 percent tariff had been split into a 25 percent reciprocal tariff and a 25 percent tariff tied to Russian oil purchases.
After the Supreme Court declared Trump’s global tariffs illegal by a 6-3 vote on Friday (February 20), he immediately moved to use another law, Section 122 of the Trade Act 1974, to impose a new 10 percent global tariff, which he later raised to 15 percent. This new tariff is set to take effect from February 24 for a period of 150 days.
During a press conference at the White House following the ruling, the president addressed questions about the India trade deal, saying, “Nothing will change in the deal with India, and it will continue payments.”
Political reactions and legal concerns
The Supreme Court ruling has removed the legal basis for the old tariffs imposed on India. Opposition leaders in India, including the Congress party, have questioned why the deal went ahead without waiting for the court decision. On Saturday, the Congress called for a review of the interim trade deal and its terms, arguing that it was rushed and now impractical.
Senior Congress leader Jairam Ramesh said in a post on X, “Why was it so urgent for Prime Minister Modi to ensure that on the night of February 2, 2026, President Trump announced the India-US trade deal? If the prime minister had waited 18 more days, Indian farmers could have avoided this crisis and India’s sovereignty would have stayed intact.”
The Congress described the deal as a betrayal, while Union Commerce Minister Piyush Goyal and Agriculture Minister Shivraj Singh Chouhan reiterated that the agreement protects India’s agriculture and dairy sectors.
Former Finance Minister P. Chidambaram also questioned the impact of the Supreme Court ruling, adding that India had already made several concessions without reciprocal benefits from the United States.
Global implications and the need for review
International affairs expert Brahma Chellaney said that India agreed to the basic trade deal despite knowing that the legal validity of the tariffs was still under review by the US Supreme Court. “Trump’s tariffs will continue to be central to his agenda as indicated by the new 10 percent global tariff, later raised to 15 percent, even though the court has weakened his position,” he said.
He also highlighted that Indian government often leaves advantages on the negotiating table and said the recent trade deal continues that pattern. He stated that the agreement included commitments beyond trade, such as gradually reducing Russian oil imports and restricting oil transfers in India’s maritime zones for ships under Western sanctions.
Reports from Reuters on February 16 suggested that India seized three oil tankers linked to Iran to enforce US sanctions, although Iranian news agency Fars denied the tankers’ connection to the Islamic Revolutionary Guard Corps.
Under the new Section 122 tariff, according to a BBC report, countries with trade deals with the United States, including India, the United Kingdom and European Union members, will face a 10 percent global tariff, which Trump has raised to 15 percent. Quoting a White House official, the report said, “The US administration expects these countries to continue following the concessions agreed under their trade arrangements.”
Experts in India said that the Supreme Court ruling will affect the India-US trade deal. They explained that Trump had promised to reduce the reciprocal tariff from 25 percent to 18 percent, but the court ruling made the old tariff illegal. Now the new 15 percent global tariff will apply temporarily, regardless of any free trade agreement.
They also clarified the impact on Indian exports, adding that about 55 percent of Indian exports to the United States faced a 25 percent reciprocal tariff, which will now be replaced by the 15 percent global tariff. For the remaining 45 percent, the United States had already given exemptions for products like smartphones, medicines and petroleum. Other products such as steel, aluminum and some auto components will see high tariffs applied uniformly.
The Supreme Court ruled the old tariffs illegal on the grounds that the authority to impose them lies with the US Congress. Experts said that the only legal basis for the India-US deal is the joint statement of February 6. Any modification in tariffs by either side allows the other country to respond. Since the US tariffs have changed, India needs to reassess the deal.
They added that the 15 percent global tariff announced by Trump is also weak and likely to face legal challenges. They stated that Section 122 allows such tariffs only for 150 days and under conditions of payment balance problems, which presently do not exist in the United States.
The experts recommended that India review its trade deal, saying, “The previous agreement is now irrelevant. With such uncertainty over US tariffs, India should step back and observe the evolving situation before making further commitments. A pause on the trade deal is necessary.”
The Indian Commerce Ministry has issued a statement confirming that it is reviewing the Supreme Court ruling and the new developments announced by the US administration. “We are studying the impact of all these developments on the trade deal with the United States,” it said.
