Nothing Changes in US–India Trade Deal, Says Donald Trump After Supreme Court Ruling


President announces 10% global tariff under alternative law, calls court verdict “deeply disappointing”

US President Donald Trump on Friday said that Washington’s trade agreement with India remains unchanged, even as he criticized a recent Supreme Court ruling that limits his ability to impose sweeping tariffs under emergency powers.
Addressing a press conference after the verdict, Trump described the US–India trade deal as a “fair deal” and praised Prime Minister Narendra Modi, calling him “a great gentleman.”
“I think PM Modi is a great gentleman. It is a fair deal. We are not paying tariffs, but they are. We did a little flip there,” Trump said in response to a question about the agreement’s status.

His remarks followed a 6–3 decision by the Supreme Court of the United States, which ruled that the president could not rely on the International Emergency Economic Powers Act (IEEPA) to impose broad tariffs on imports. The court held that while IEEPA allows the president to regulate certain economic transactions during national emergencies, it does not authorize the imposition of sweeping import tariffs. It reaffirmed that Congress retains primary authority over duties and trade taxes.
The ruling effectively invalidated the tariff framework introduced under IEEPA, including high tariffs that had been applied to India. India had faced tariffs totalling 50 percent from August until just two weeks ago, when Indian and American officials agreed on a bilateral trade understanding.
Despite the setback, Trump announced he would sign an executive order imposing a 10 percent global tariff under Section 122 of US trade law, to take effect within three days. He said other measures—including national security tariffs under Section 232 of the Trade Expansion Act of 1962 and actions under Section 301—would remain in force.

“I disagree with the court’s decision,” Trump said, calling it “deeply disappointing” and “ridiculous.” He added that he had “powerful alternatives” to pursue tariffs through other legal channels, though these would require additional procedural steps such as investigations.
Trump also praised dissenting justices, particularly Justice Brett M. Kavanaugh, and argued that the ruling clarified, rather than weakened, presidential trade authority. In posts on his Truth Social account, he maintained that the decision addressed only the use of IEEPA for tariffs and did not eliminate other statutory powers available to the president.
The Supreme Court’s decision marks a significant legal boundary on the use of emergency economic powers for trade measures, reinforcing that broad tariff actions require explicit congressional approval. However, Trump signaled that his administration will continue to pursue tariff strategies through alternative legal routes.

By nanika