The Ministry of Commerce and Industry on Saturday said it has taken note of the US Supreme Court’s ruling on tariffs and is closely studying the developments. “We have noted the US Supreme Court judgment on tariffs yesterday. President Trump has also addressed a press conference in that regard. Some steps have been announced by the US Administration. We are studying all these developments for their implications,” the ministry said in an official statement.
The US Supreme Court had struck down President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose broad, country-specific tariffs, a decision that has introduced fresh uncertainty into global trade policy.
Earlier in the day, Union Minister Pralhad Joshi said India would review the details of the 6-3 verdict before issuing any official response.
In the government’s first reaction, Joshi said the Centre was examining the judgment carefully and that a formal response would be issued after a detailed review. He added that either the Ministry of Commerce or the Ministry of External Affairs would comment once the assessment is complete.
For now, both New Delhi and Washington appear to be treading cautiously as the implications of the ruling unfold.
Why India is ‘studying’ the SCOTUS order carefully?
For Indian exporters, the US tariff story has begun to resemble a game of economic musical chairs. Just as businesses adjusted to one rate, the rules changed again, leaving confusion over a simple but critical question: how much duty will Indian goods actually face in the US?
Until last week, the answer seemed clear. Under an interim trade understanding with President Trump, Indian exports were to face an 18% tariff, sharply reduced from the earlier threat of 50%. Companies had begun recalibrating prices, contracts and supply chains around that number.
Then came the disruption when the US Supreme Court ruled that Trump could not use the decades-old International Emergency Economic Powers Act (IEEPA) to impose sweeping tariffs during peacetime.
Legally, that decision wiped out the foundation for the 18% “reciprocal” duty. In theory, tariffs on Indian goods should have snapped back to the earlier Most Favoured Nation (MFN) level of about 3.5%.
But the reset lasted barely a day.
By Saturday, Trump invoked a little-used provision, Section 122 of the Trade Act, to impose a fresh 10% tariff on imports from all countries, including India. The White House later clarified that countries with trade arrangements, India included, would temporarily face this 10% rate. Add that to the baseline MFN duty of 3.5% and the effective tariff works out to roughly 13.5%.
Yet the picture remains murky. Trump has publicly suggested the earlier 18% understanding still stands, while officials indicate the lower temporary rate applies for now. With multiple statements coming from all around, India will indeed have to carefully “study” the implications of the developments in the United States.