India should re-examine its ongoing negotiation with the United States on an interim trade deal from a position of strength, trade economists said after the US Supreme Court struck down Trump’s sweeping power to impose tariffs under the International Emergency Economic Powers Act (IEEPA) in a landmark ruling on Friday.

Reversal of what is widely known as the ‘reciprocal tariff’ means India will no longer be subjected to the 25 per cent tariff it pays on around 55 per cent of its exports to the world’s largest economy.

Before Trump imposed a 25 per cent tariff in July 2025 on India and quickly ramped up to 50 per cent from August 27 to punish India for buying Russian oil and funding Kremlin’s war machine, the average MFN tariff (most favoured nation) Indian goods enjoyed was about 3 per cent.

Later in the evening, Trump said he would impose a 10 per cent ‘global tariff’ under Section 122 of Trade Act of 1974 effective immediately and kick off investigations under Section 301 of the same Act. He also said nothing has changed regarding the India trade deal.

Commenting on the development before Trump’s late night press meet, Ajay Srivastava, founder of trade think tank GTRI, said removal of reciprocal tariffs will free about 55 per cent of India’s exports to the US from the 18 per cent duty, leaving them subject only to standard MFN tariffs. On the remaining exports, Section 232 tariffs will continue — 50 per cent on steel and aluminum and 25 per cent on certain auto components — while products accounting for roughly 40 per cent of export value, including smartphones, petroleum products and medicines, will remain exempt from US tariffs.

“The ruling should prompt India to re-examine its trade deal with the United States,” Srivastava said.

Trade economist and former JNU professor Biswajit Dhar said India now should go to the trade negotiation from a position of strength. “The table has turned,” Dhar told this newspaper late in the evening.

He argued that India should not open its door on agri and dairy products or give in to US pressure to stop buying Russian oil. He also said Delhi should tread carefully on data security and or “non-market policies of third parties”.

No reaction was available from the central government on the SC ruling. A team of negotiators from the commerce ministry is scheduled to visit the US on a three-day trip to finalise the legal text of the bilateral trade deal.