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Exporters jubilant at U.S. tariff verdict; $8 billion of exports may still face duties
According to data, India exported about US $8.3 billion worth of goods in Section 232 categories to the U.S. in 2024.
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IANS - Fri, 20, Feb 2026
- 16:52 EST
- 12
Representative image / AI/IANS
With the U.S. Supreme Court striking down reciprocal tariffs imposed by the Donald Trump administration on Feb. 20, Indian exporters were jubilant at the news. However, around US $8-9 billion worth of trade is still likely to face higher duties under national security provisions.
The U.S. Supreme Court ruling effectively eliminates the 18 percent reciprocal tariff agreed earlier under the India–U.S. trade framework.
According to analysts, Section 232 duties remain in force, covering sectors deemed critical to U.S. national security, such as steel, aluminum, automobiles, timber, copper, and certain machinery products.
ALSO READ: Tariffs ruling plunges Trump into political and economic chaos
According to data, India exported about US $8.3 billion worth of goods in Section 232 categories to the U.S. in 2024.
This accounts for around 10.4 percent of India's more than US $80 billion in exports to the U.S.
However, the U.S. administration indicated it could explore alternative routes to impose trade restrictions.
Among the options available to the U.S. administration is to rely on long-standing trade statutes that give the president authority to impose tariffs after formal investigations.
After the U.S. Supreme Court ruling, President Trump said that he has a "backup plan" for the punitive duties.
As per reports, these include Section 301 of the Trade Act of 1974, which allows the U.S. to impose duties in response to unfair trade practices by foreign countries, and Section 232 of the Trade Expansion Act, which permits tariffs on national security grounds.
Meanwhile, the U.S. court ruling marks a rare instance of the conservative-led court reining in Trump's use of executive power.
According to Politico, the court in a 6-3 decision struck down the tariffs, calling it "a major repudiation of a core piece of Trump's economic program."
Discover more at New India Abroad.
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