US Supreme Court Strikes Down Trump's Tariffs, Easing 18% Tax on Most Indian Exports in Major Trade Win

SC Delivers 6-3 Blow to Trump's Tariff Power

The justices had a 6–3 decision that upheld the decision of a lower court that the Republican president used this 1977 law beyond the advantage of his authority. The courts found that a legal victory can be won when businesses affected by the tariffs — and 12 U.S. states, most of which are Democratic-led — oppose Mr. Trump’s unprecedented use of this ⁠law by unilaterally imposing the import tariffs.
The majority held that the Constitution "very clearly” gives Congress the power to levy taxes, including tariffs. "The Framers did not vest any part of the taxing power in the Executive Branch," Chief Justice John Roberts said.

Not Zero Tariffs: Steel, Aluminium Duties Still Apply

Though the US Supreme Court ruling is a big legal win for trade partners, it does not equate to zero tariffs on all Indian imports. The court ruling lifts the sweeping 18% "tax" on most Indian goods, but some duties remain on products such as steel and aluminium.
With the 18% reciprocal tax now being legally blocked, most Indian exports may return to lower baseline levels, but “zero tariff” applies only to specific sectors (for example, pharmaceuticals or semiconductors or products clearly named in the bilateral deal).

What is IEEPA? Old Law Trump Misused

Mr. Trump has used tariffs — taxes on imported goods — as among his most important economic and foreign policy levers. They are at the center of a global trade war that Mr. Trump ignited after entering his second term as president, alienating trading partners, rattling financial markets and sparking global economic uncertainty.
The U.S. Constitution gives Congress, not the President, the power to levy taxation and tariffs. But instead, Mr. Trump used a statutory authority at his disposal — calling out IEEPA when he hit nearly every trading partner of the United States with the tariffs, without receiving approval from Congress.

People Like Taxes But Hate High Prices

Trump had framed the case as one of the most critical in history in the US, warning that if overturned the country’s economy would collapse, but opponents covered a wide range of ideologies — from Democratic states to libertarian and pro-business groups often affiliated with the Republican Party.
President Trump passionately played up the stakes of the case as one of the most consequential in America’s history, threatening that an adverse ruling would provide a crippling blow to the nation’s economic well-being. But public opinion polls support tariffs in a vague way, often lost as a result of voter concern over the cost of living and affordability woes.