US President Donald Trump on Friday said the India–US trade agreement would remain unaffected despite the US Supreme Court striking down his reciprocal tariff regime. His remarks came shortly after he announced a fresh 10% global tariff under an alternative legal route, following the court’s ruling that his earlier tariff framework was illegal.
Responding to questions about the impact of the verdict on the nearly finalised India–US trade deal, Trump asserted that the terms would remain intact.
“Nothing changes. They’ll be paying tariffs, and we will not be paying tariffs,” he said. “So, the deal with India is they pay tariffs. This is a reversal of what it used to be. I think Prime Minister Modi is a great gentleman, a great man, actually, but he was much smarter than the people he was dealing with in the United States. India was ripping us off. So we made a deal with India — it’s a fair deal now. We are not paying tariffs to them, and they are paying tariffs. We did a little flip.”
India–US Trade Deal
Earlier this month, Trump and Prime Minister Narendra Modi announced that both sides had agreed on the broad contours of a trade deal. Under the proposed interim framework, the US will impose an 18% tariff on Indian exports, while duties on US exports to India are expected to be reduced to zero.
Soon after the announcement, both countries issued a joint statement outlining the structure of the arrangement. Trump also signed an executive order withdrawing the earlier 25% tariffs imposed on India over its purchases of Russian crude oil.
India said the revised 18% tariff rate gives it a relative advantage over several regional competitors in labour-intensive export sectors. The rate is lower than those imposed on countries such as Vietnam, Bangladesh, China, Thailand, Pakistan and Indonesia. It also marks a sharp reduction from the 50% tariff level introduced by the Trump administration in August 2025.
Commerce Minister Piyush Goyal said the agreement opens up access for Indian exporters to a $30 trillion market. He added that the interim arrangement is expected to generate substantial gains for MSMEs, farmers and fishermen.
Earlier this week, reports indicated that an Indian delegation is likely to visit the United States in the coming days to finalise the interim pact.
Trump’s reaction to Supreme Court ruling
On Friday, the US Supreme Court invalidated Trump’s sweeping global tariff measures, ruling that the administration had improperly used emergency authority to implement them — a significant setback to a policy central to his economic agenda.
In response, Trump announced plans to introduce a uniform 10% global tariff under a different statutory provision. However, he acknowledged that the alternative law would limit such duties to 150 days.
Visibly angered by the judgment, Trump criticised the justices who voted against his measures, saying he felt “absolutely ashamed” of the decision and describing it as “deeply disappointing.”
While maintaining that the ruling was incorrect, Trump said it would not derail his broader trade strategy, adding that he still has “other powerful options” available to pursue his agenda.
