Over $8 billion of Indian exports still face US tariffs despite Supreme Court relief

President Donald Trump speaks during an event to announce tariffs (File image)

• US Supreme Court lifts 18% tariffs on Indian goods
• $8B+ in Indian exports still subject to US security tariffs
• Tariff uncertainty remains as US may seek new trade restrictions

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The US Supreme Court’s decision to strike down reciprocal tariffs imposed by the Trump administration has provided significant relief to Indian exporters, but over $8 billion worth of trade will continue to face higher duties under national security provisions.

The ruling effectively eliminates the 18 percent reciprocal tariff agreed earlier under the India–US trade framework, bringing tariffs on most Indian goods back to Most Favoured Nation (MFN) levels, which historically averaged around 3 percent before the tariff escalation.

However, Section 232 duties remain in force, covering sectors deemed critical to US national security such as steel, aluminium, automobiles, timber, copper and certain machinery products.

These tariffs stem from separate trade investigations and were not part of the emergency tariff measures overturned by the court.

According to UN COMTRADE data cited in the analysis, India exported about $8.3 billion worth of goods in Section 232 categories to the US in 2024, accounting for roughly 10.4 percent of India’s $80-billion exports to the US. This means nearly one in ten dollars of Indian exports remains exposed to tariff risks even after the ruling.

The largest exposure lies in automobiles ($3.9 billion), steel ($2.5 billion) and aluminium ($800 million), together accounting for more than 85 percent of the trade still subject to duties. Smaller but notable exposure persists in timber, copper and industrial vehicle exports.

India’s dependence on the US market is particularly pronounced in these tariff-sensitive sectors. While the US accounted for 18.3 percent of India’s total exports overall, its share rises to 22.7 percent in Section 232 categories, underscoring greater vulnerability in these industries.

The relief may also prove temporary. The US administration has indicated it could explore alternative legal avenues to impose trade restrictions, suggesting tariff uncertainty may persist despite the court ruling.