Industry hopes govt can rework US trade pact

New Delhi: Domestic industry and experts saw some relief in the US Supreme Court striking down Trump's tariffs and argued that it may help India negotiate a better deal.

While US President Donald Trump had imposed 50% tariffs on Indian exports, the 25% penal tariffs have been done away with. With the interim agreement finalised, the US is to lower the additional levy to 18%.




While Indian industry was seeing signs of relief following the US Supreme court order. Saurabh Agarwal, tax partner at EY India said the "judicial correction" strengthens India's negotiating hand. "We see this as a net positive; it allows India to double down on its manufacturing momentum, without the immediate threat of arbitrary trade barriers. Our focus remains on transitioning this into a comprehensive Bilateral Trade Agreement that honours reciprocal market access, while safeguarding India's strategic domestic priorities. However, duties under section 232 still continue impacting sectors such as steel, alumunium, automobiles."

Trade research body GTRI said the ruling should prompt India to re-examine its trade deal with the US. "The decision effectively renders recent trade deals initiated or concluded by the US with the UK, Japan, the EU, Malaysia, Indonesia, Vietnam and India one-sided and useless. Partner countries may now find reasons to dump these deals," it said.

"This ruling against Trump would reassert Congress's primacy in trade policy, sharply curbing presidential latitude to weaponise tariffs and reshaping how future administrations wield emergency economic powers," it added.

While the order has raised hopes of exporters getting refunds, the court did not make any such observation. The case will now go back to the Court of International Trade to sort through the refunds.