‘Nothing changes; they will be paying tariffs’: What Trump said on trade with India after US Supreme Court ruling

However, the Supreme Court, earlier in the day, ruled 6-3 that Trump’s sweeping tariffs on goods from nearly all partner countries had violated federal law.

Trump, who called the court’s decision “deeply disappointing”, said “nothing changes”, while responding to a question about the impact the ruling is going to make on the India-US trade deal. The deal is expected to be signed by the end of March.

“Nothing changes. They’ll be paying tariffs, and we will not be paying tariffs. This is a reversal of what used to be. PM Modi is a great gentleman, a great man. He was much smarter than the people he was against. In terms of the US, He was ripping us off. So, we made a deal with India. A fair deal now. We are not paying tariffs to them, and they are. We did a little flip,” Trump told the reporters.

What India-US interim deal says

The United States and India earlier announced a framework for an Interim Agreement on reciprocal, mutually beneficial trade, reaffirming their commitment to a broader Bilateral Trade Agreement (BTA) launched by President Trump and Prime Minister Narendra Modi on February 13, 2025.

As part of the framework, India has agreed to eliminate or reduce tariffs on all US industrial goods and a wide range of US agricultural and food products, including dried distillers’ grains (DDGs), red sorghum for animal feed, tree nuts, fresh and processed fruit, soybean oil, wine and spirits, and additional products.

On the other hand, the United States will impose a reciprocal tariff of 18 per cent on goods originating in India, including textiles and apparel, leather and footwear, plastic and rubber products, organic chemicals, home decor, artisanal goods and certain machinery.

Supreme Court’s ruling on tariffs

However, the US Supreme Court held that the President did not possess the authority under the 1977 International Emergency Economic Powers Act (IEEPA) to impose extensive import duties on goods from nearly all US trading partners.

Trump vows escalation, announces 10% tariff

Reacting at a lengthy press conference, Trump announced that he will sign an executive order imposing a 10% global tariff under Section 122, though those tariffs would be limited to 150 days unless extended legislatively.

“Income coming in from tariffs will increase,” Trump said. “The Supreme Court made my ability to impose tariffs more powerful,” he added, arguing that the ruling had opened alternative pathways.

“I will go in a stronger direction now,” Trump said.

At one point, he remarked, “I could do anything I want to do, but I can’t charge any money,” and also asserted, “I am allowed to impose an embargo.”

Trump said the ruling would not “substantially constrain” his tariff authority going forward and mentioned other legal avenues, including the Trade Expansion Act and the Tariff Act of 1930. He acknowledged that those options would involve “a little bit longer process.”

“Their decision is incorrect. But it doesn’t matter because we have very powerful alternatives,” Trump said.