US Supreme Court cancels tariffs, now what will happen to India-US trade agreement?

Updated: 22-02-2026, 07.17 AM

What is the news?

The US Supreme Court has canceled the tariffs imposed by President Donald Trump. Trump had imposed a total tariff of 50 percent on India. After this, an interim trade agreement was signed between the two countries, under which the tariff was reduced to 18 percent. Now that the court has declared the tariffs illegal, questions are being raised as to what is the future of the India-US trade agreement. Let us understand.

Both countries will continue talks on the agreement- report

Hindustan Times The two countries are committed to formalizing a ‘mutually beneficial’ interim trade agreement in line with the spirit of the joint statement and taking into account the changed situation, it said, quoting people with knowledge of the matter. “Ideally a mutually beneficial agreement would require the US to either reduce tariffs to 15 per cent or Most Favored Nation (MFN) rates,” sources said.

Will America reduce tariffs?

“Tariff commitments may have to be changed in line with the changed situation, as the joint statement specifically provides for such adjustments,” one of the sources said. Actually, America will impose 18 percent tariff on India as per the trade agreement, but the court has canceled the tariffs. However, after this, Trump has imposed 15 percent tariff on all countries under a new law, which has come into effect with immediate effect.

Trump said- India will continue to pay tariffs

Trump said, “Nothing has changed. India will pay tariffs. We will not pay tariffs. As you know, it’s the opposite of what it was before. We made a deal with India and now it’s a fair deal. We’re not paying them tariffs. Now India is paying them.” Trump had said about Indian Prime Minister Narendra Modi that he was very good but was charging more tariffs than us.

What are the experts saying?

Ajay Sahay, Director General of Federation of Indian Export Organizations (FIEO), said, “The US and India are important partners of each other, so a win-win solution is expected soon. Having a 15 per cent tariff on all countries makes the 18 per cent tariff meaningless.” Gulzar Didwania, partner, Deloitte India, said, “Reciprocal tariff is no longer valid. Therefore, the question of 18 per cent rate does not arise. Like all countries, India will also be subject to 15 per cent rate.”