New Delhi. The decision of the US Supreme Court to declare President Donald Trump’s global tariffs illegal is going to change the equations of global trade, which will have a direct and widespread impact on the Indian economy. In this historic 6-3 decision that came on Thursday (20 February 2026), the court made it clear that President Trump has violated his constitutional rights by imposing tariffs without the permission of Congress under the ‘International Emergency Economic Powers Act’ (IEEPA).

With this decision, there is a possibility of tariff refund of about $ 175 billion (14.5 lakh crore), which is being seen as a big relief for big exporting countries like India. This news is also important for India because America is its biggest export market. In the first ten months of the financial year 2025-26, India has exported $72.46 billion to America. The tariffs imposed by the Trump administration directly affected about 55% of India’s total US exports, making Indian goods costlier in the US market and reducing their competitiveness. Due to this, many big orders from key sectors like electronics, textile, auto parts and chemicals had gone to competing countries like Vietnam and Bangladesh.

Impact and improvements expected on key areas

• Sector-Specific Relief: America had imposed 50% tariff on steel, aluminum and copper and 25% tariff on auto components. Now with the removal of these tariffs, there is expected to be a huge jump in the exports of big companies like Tata Steel, JSW Steel and Bharat Forge.
• Employment and Economy: Experts estimated that about 20 lakh jobs in India were at risk due to these tariffs. Now with the increase in exports, there is a possibility of reviving the manufacturing sector and creating employment opportunities.
• Trade Balance: India has a trade surplus with America and India’s trade balance can become stronger if the export volume increases due to the removal of tariffs.

Future challenges and risks
Although this decision is a big victory for India, experts have also advised caution. This decision of the court is limited only to the tariffs imposed under IEEPA. The US administration still has legal provisions like Section 232 and Section 301, using which it can impose fresh tariffs. Apart from this, competition with other countries in the global market may become even more intense. This decision has brought a golden opportunity for Indian exporters, but its long term benefits will depend on the future trade policies of the US government.