Reciprocal tariffs announced by US government in April 2025, struck down by US Supreme Court

 As you are aware, on 20 February 2026 the reciprocal tariffs announced by the US government on 02 April 2025, was struck down by the US Supreme Court, ruling that the IEEPA does not confer any authority to the Executive to impose tariffs.

• The 18% reduction under the February 2026 interim framework was premised on the IEEPA based reciprocal regime, which the Supreme Court invalidated. The new global 10% additional duty (effective 24 February 2026 under Section 122) applies instead, but the US administration has signalled that negotiated deals like the US-India framework remain on track, with expectations that both sides honour their commitments amid the changed tariff baseline.
• In other words, the immediate impact for India is that the currently applicable 25% reciprocal tariff will be replaced by a 10% additional duty, effective 24 February 2026. This will be temporary (150 days max without congressional extension) and in addition to any MFN tariff applicable on that product. Hence, there is a marginal relief for the Indian exporters.
• Section 232 tariffs on Automobiles, Heavy Trucks, Steel and Copper remain in force and are unaffected by the ruling.
• This development may recalibrate the framework for discussions between India-US on the Interim Trade Deal as the baselines have changed.

Given these dynamic changes, stakeholders should closely monitor further developments, seek clarifications for details as they emerge, and plan their business accordingly.