Trump Claims No Change to India Trade Deal Post SC Verdict

U.S. President Donald Trump declared on Friday that "nothing changes" regarding the recently negotiated trade deal with India, despite the Supreme Court's landmark ruling striking down his sweeping emergency tariffs. Speaking to reporters at the White House shortly after the 6-3 decision invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), Trump emphasized that the arrangement with New Delhi remains intact. He described the pact as a "fair deal" now favoring the United States, where India pays tariffs while the U.S. does not, marking what he called a "little flip" from previous imbalances.

The Supreme Court's ruling, authored by Chief Justice John G. Roberts Jr., held that IEEPA—intended for national emergencies involving foreign threats—does not authorize the president to impose broad tariffs, a power Congress has traditionally reserved for itself. This decision invalidated duties enacted in 2025, including a punitive 50% tariff on certain Indian goods tied to energy trade with Russia, which had been reduced to 18% under the interim trade framework announced earlier this month. Trump's comments came amid his broader response to the setback, where he quickly signed an executive order imposing a new 10% global tariff under Section 122 of the Trade Act of 1974, set to take effect on February 24 for up to 150 days.

Trump praised his relationship with Prime Minister Narendra Modi, calling him a "great gentleman" and "a great man," while noting that India had previously "ripped off" the United States through higher tariffs on American goods. He insisted the India-specific deal stands firm, with New Delhi continuing to pay the agreed 18% rate on applicable imports, unaffected by the court's limits on emergency powers. The president suggested that some pre-existing trade agreements would persist, while others might be replaced by new tariffs, but he repeatedly affirmed "nothing changes" for India, highlighting the bilateral ties as "fantastic."

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The trade framework between the U.S. and India, part of ongoing efforts toward a broader Bilateral Trade Agreement, includes concessions such as reduced tariffs on U.S. agricultural and industrial exports to India, in exchange for lowered duties on Indian goods entering the American market. Trump's reassurance aims to quell concerns in global markets and among stakeholders about potential disruptions following the judicial rebuke. Critics, however, warn that the new global tariff and potential further investigations under statutes like Section 301 could still introduce uncertainty for trading partners, including India.

The episode underscores ongoing tensions in U.S. trade policy under Trump's second term, where aggressive tariffs have been central to addressing perceived imbalances. As the administration pivots to alternative legal avenues, the India deal's stability offers a point of continuity amid broader economic shifts. Markets and businesses will closely monitor implementation of the new measures and any retaliatory responses from affected nations in the weeks ahead.

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