The US Supreme Court’s ruling against reciprocal tariffs brings significant legal clarity and reduces tariff uncertainty for India, reinforcing limits on unilateral tariff actions, industry experts said on Friday.

Notably, under the interim trade arrangement the US had agreed to reduce reciprocal tariffs on India to 18 per cent which will no longer remain relevant following the Court’s decision.

“Any attempt to levy such tariffs would require Congressional approval. This is likely to give much-needed relief and a competitive boost to Indian exporters, while also paving the way for potential refunds of tariffs collected without adequate legal basis,” said Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat.

However, the US is expected to continue relying on sector-specific tariffs under Section 232 in strategic sectors, underscoring the importance of advancing the bilateral trade agreement to secure durable tariff certainty and stable market access for Indian exporters, said experts.

In a major setback to President Donald Trump’s economic agenda, the US Supreme Court on Friday struck down most of his sweeping tariffs, ruling that he lacked authority under a 1977 emergency law to impose broad import levies on America’s trading partners across the world, including India.

The ruling marks a rare instance of the conservative-led court reining in Trump’s use of executive power. According to POLITICO, the court in a 6-3 decision struck down the tariffs, calling it “a major repudiation of a core piece of Trump’s economic program.”

Chief Justice John Roberts, writing for the majority, said: “The President asserts the extraordinary power to unilaterally impose tariffs of unlimited amount, duration, and scope. In light of the breadth, history, and constitutional context of that asserted authority, he must identify clear congressional authorization to exercise it.”

Roberts added that the 1977 law Trump relied on “falls short” of the Congressional approval required.