New Delhi – A ruling by the US Court of Appeals for the Federal Circuit striking down former President Donald Trump’s sweeping import tariffs has raised questions about whether India will benefit from reduced duties.
What the Court Said
The appeals court upheld a May verdict by the US Court of International Trade, declaring that Trump exceeded his authority when he invoked the International Emergency Economic Powers Act (IEEPA) of 1977 to impose blanket tariffs on nearly all trading partners. Judges ruled 7–4 that Congress never intended to give the president “unlimited authority” to levy such duties.
Which Tariffs Are Impacted?
The overturned measures include Trump’s so-called “Liberation Day” tariffs, which slapped:
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10% base duties on almost all imports, and
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Up to 50% reciprocal tariffs on countries with which the US had trade deficits, including India.
These were separate from targeted tariffs under other laws:
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Section 232 tariffs on steel and aluminum (50% in India’s case), justified on national security grounds, remain in place.
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Tariffs under the Trade Act of 1974 or Section 301 on China are unaffected.
What This Means for India
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The ruling directly impacts the 25% reciprocal tariff Washington imposed on Indian goods under IEEPA.
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It does not roll back the 50% steel and aluminum tariffs imposed under Section 232, which have been a major irritant in India–US trade ties.
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If upheld by the US Supreme Court, the decision could force the Treasury to refund billions in duties collected globally.
The Bigger Picture
For India, the court’s decision may offer partial relief but not a full rollback of trade barriers. Sector-specific levies—especially on steel and aluminum—remain intact, since they were imposed under a different legal authority.
Experts say the verdict may also weaken the ability of future presidents, including Trump if re-elected, to wield tariffs as a blunt instrument in trade negotiations.
