New Delhi. The US Supreme Court has canceled the ‘reciprocal tariff’ imposed by President Donald Trump. This decision was being awaited for the last several weeks. While this decision of the American court is a big blow for Trump, it is a news of relief for India. However, the problems of Indian exporters have not ended completely. Heavy taxes will still continue on exports worth more than $8 billion (about Rs 67,000 crore) from India.

What changed and what didn’t?

• Big relief: 18% tax on most goods going from India to America will now be abolished. It will come back to the old level (about 3%).
• Still stuck: Under America’s ‘National Security’ law, taxes on goods like steel, aluminum and automobiles will still be applicable. The court’s decision does not affect them.

Which sector is most affected?

There is still a threat of tax on 1 out of every 10 dollars worth of goods going from India to America. The most affected sectors are:

• Automobile: Exports worth $3.9 billion affected.
• Steel: Exports worth $2.5 billion.
• Aluminium: Export of 800 million dollars.

Trump had made tariffs a weapon
Let us tell you that Donald Trump took oath as President on January 20 last year. Since then, Trump started using tariffs to put pressure on global trade. He imposed tariffs on almost all major trade partner countries. His argument was that in many countries heavy tariffs are imposed on American goods, whereas there American products are easily sold cheap or without tariffs.

India got relief in tariff on 3 February
It is noteworthy that America had imposed the highest tariff of up to 50% on India, which also included an additional penalty tariff of 25% on purchasing oil from Russia. But on February 3, 2026, Trump had announced to reduce this tariff on India to 18%. Besides, the 25% tariff imposed on oil from Russia was also removed. He also announced an interim trade deal with India.