Trump Says India Trade Deal Remains on Track Despite US Supreme Court Tariff Ruling

Earlier this month, President Trump signed an Executive Order removing the 25 per cent punitive tariffs imposed on India. Under the proposed trade arrangement, the United States will levy a reduced tariff on Indian goods, lowering the rate from 25 per cent to 18 per cent.

Meanwhile, a White House official clarified that the tariff applicable to India will temporarily be reduced to 10 per cent following President Trump’s announcement of a new global tariff framework. According to the clarification, the newly announced 10 per cent tariff imposed under Section 122 will replace the earlier duties that had been imposed under the International Emergency Economic Powers Act (IEEPA), which were subsequently struck down by the US Supreme Court.

The White House further explained that the new Section 122 tariff is not an additional duty on India but a temporary replacement for the previously imposed IEEPA-based tariffs. As a result, the applicable tariff rate for India will stand at 10 per cent for the time being. The administration stated that the temporary adjustment reflects the legal limitations created by the Supreme Court’s ruling while allowing the government to continue pursuing its trade objectives through alternative statutory mechanisms.

In New Delhi, the Ministry of External Affairs said that India and the United States are continuing efforts to finalize a mutually beneficial bilateral trade agreement in accordance with the Joint Statement adopted recently. Ministry spokesperson Randhir Jaiswal confirmed that an Indian delegation, led by the country's chief trade negotiator, will travel to the United States next week to continue discussions aimed at concluding the agreement.

The latest developments indicate that both governments remain committed to advancing the proposed trade pact despite ongoing legal and policy changes in the United States. With negotiations continuing at the official level and tariff arrangements being adjusted in response to judicial decisions, the upcoming round of talks is expected to play an important role in shaping the future of economic and trade relations between India and the United States.