New Delhi. Indian exporters can get big relief from an important decision of America’s largest court. The court canceled several ‘reciprocal tariffs’ imposed by President Donald Trump, calling them illegal. At the same time, Ajay Srivastava of Global Trade Research Initiative (GTRI) told Moneycontrol that after this decision, about 55% of India’s exports to America can now become 18% duty free.
This applies to about $48 billion of goods on which additional tariffs were imposed from September 2025. Now only normal MFN tariff (Most Favored Nation) will be applicable on these products, which on average ranges between 2.8% to 3.3%.
No relief on steel, aluminum and some auto parts
However, not all sectors will get relief. Tariffs of up to 50% on steel and aluminum and up to 25% on some auto parts will still be applicable. These tariffs have been imposed under the rules related to America’s national security, so they are not affected by the court’s decision. Experts believe that this decision can give Indian exporters a competitive edge. Also, the companies which have already paid the tariff can also demand a refund, although the method and timing of this is not clear yet.
America is India’s biggest trading partner
An interim trade deal is currently being negotiated between India and America, which can later be converted into a larger bilateral trade agreement. Experts say that this decision of the court can further strengthen India’s negotiating position. America is a big trading partner of India. In the year 2024-25, India’s exports to America were more than $86 billion.
Know what decision the Supreme Court gave
Trump said on the court’s decision – Backup plan ready
During breakfast with US governors at the White House, Trump described the Supreme Court’s decision regarding tariffs as shameful. He said he has a backup plan for the tariffs.
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.
