India, March 4 -- The US Supreme Court's 6-3 decision on February 20, 2026, striking down President Trump's sweeping tariff regime under the International Emergency Economic Powers Act, is more than an American constitutional moment. For India, which negotiated a significant trade framework with Washington, it is a signal that the rules of engagement may be changing.

IEEPA, enacted in 1977, was designed as a narrow emergency instrument to restrict financial transactions with hostile nations under emergencies. It was never intended as a tariff mechanism. Yet early in 2025, President Trump invoked it to impose tariffs ranging from 10% to 41% on imports from most of the world, citing drug trafficking and illegal immigration. More than $100 ...