Impact of US Supreme Court’s striking down of Trump Tariffs:India to still pay 50% tax on steel aluminium; other sectors to see rise in exports, say experts

Indian exporters have welcomed the US Supreme Court’s decision striking down tariffs imposed by President Donald Trump. Speaking to News Agency PTI, various national level associations said the move is a big relief to domestic firms affected by the country-specific duties. Federation of Indian Export Organisations (FIEO) President SC Ralhan said, “The recent ruling of the US Supreme Court striking down the reciprocal tariffs under the International Emergency Economic Powers Act brings welcome relief to Indian exporters affected by country-specific duties.” Sectors in India that stand to benefit from striking down of Trump Tariffs: The US Supreme Court’s verdict is expected to benefit those sectors which have high export exposure to America which include textiles, leathers, shrimps, etc. GTRI founder Ajay Srivastava says to PTI, “Products accounting for roughly 40 per cent of export value, including smartphones, petroleum products and medicines, will remain exempt from US tariffs.” India to still pay 50% tariff on steel aluminium exports: The US Supreme Court has only striked down tariffs imposed by Trump by invoking the International Emergency Economic Powers Act (IEEPA.) The US administration had imposed separate tariffs on steel, aluminium and select auto components under a different law – Section 232. These tariffs will remain effective over and above soon to be implemented new global tariffs of 10%. Tariffs imposed under Section 232 on products such as steel, aluminium, and certain auto components remain in force, and exporters in these sectors will continue to face cost pressures. Tariffs imposed under Section 232: Trump may also have to refund tariffs already collected from Indian exporters “Importers may seek refunds of duties paid under the invalidated regime, which could provide near-term liquidity support. The decision also opens space for more stable and constructive India-US trade engagement,” Ralhan said. Meanwhile, Trump announces new global tariffs of 10% The US president has announced soon to be implemented fresh 10% global tariffs on top of existing custom duties. India-US trade size During 2021-25, the US was India’s largest trading partner in goods. The US accounts for about 18% of India’s total exports and 6.22% in imports.
In 2024, the bilateral trade touched ₹11 lakh crore (₹7.35 lakh crore – exports ₹3.46 lakh crore – imports.)