Are Trump tariffs legal? US Supreme Court could decide today

Either outcome would carry implications for India, shaping leverage in India-US trade talks

Last Updated: Jan 09, 2026, 09:01 IST1 min

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A file photo of U.S. President Donald Trump displays a signed executive order imposing tariffs on imported goods during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House in Washington, DC. Photo by Andrew Harnik/Getty Images/AFP

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The US Supreme Court is poised to hand down a decision today that could upend one of the most aggressive trade moves of 2025: President Donald Trump’s tariffs on foreign goods.

The justices will decide whether Trump’s use of emergency powers to impose sweeping tariffs was lawful or not.

Where India Stands

New Delhi has been on the sharp end of Trump’s tariff moves. The US announced a 25 percent “reciprocal tariff” on India in April and raised it to 50 percent in August as penalty for India’s purchase of Russian oil. The US is India’s largest export destination, with shipments totalling $86.5 billion last year.

The government responded with emergency support for exporters, announcing a set of schemes with an outlay of Rs 45,060 crore, while Prime Minister Narendra Modi urged Indians to buy “swadeshi” (local products).

But despite trade frictions, domestic data shows momentum. First advance estimates put FY26 real GDP growth at about 7.4 percent, underpinned by robust services activity and healthy manufacturing output. International agencies, too, see India as one of the fastest-growing large economies.

Trade Deal

New Delhi and Washington have been negotiating a bilateral trade arrangement that could reduce tariffs. But talks have been slow and politically fraught.

A Supreme Court ruling striking down the tariffs would not automatically end the talks, just as a decision upholding them would not resolve negotiations.

Policymakers on both sides will likely treat the ruling as one more lever in a larger, politically-charged bargaining process.

Signals from Washington

Today’s ruling will land against the backdrop of a US trade posture that has hardened sharply this week.

Trump on Thursday backed a bill that proposes to impose tariffs of up to 500 percent on imports linked to Russian oil, sending a warning shot to countries—including India—that continue to buy discounted Russian crude.

Though just a proposal, the move could be used as a negotiating tactic in trade deal talks.

On the same day, the US withdrew from the India-led International Solar Alliance (ISA) along with several other international organisations.

For India, today’s decision would be significant. The economy has weathered tariff shocks with little visible macro stress so far. But sustaining growth in the face of 50 percent duties, and the prospect of even harsher penalties, would test that resilience.

First Published: Jan 09, 2026, 09:21

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