3 min readMar 18, 2026 06:00 AM IST First published on: Mar 18, 2026 at 06:00 AM ISTThe implications of the US Supreme Court’s ruling that struck down President Donald Trump’s policy of reciprocal tariffs are unfolding across the world. A few days ago, Malaysia’s investment, trade and industry minister Johari Abdul Ghani is reported to have said that the deal between the two countries was “null and void” following the US court’s decision. Earlier, in the absence of any clarity on the tariff structure, the European Union had stopped working towards ratifying its trade deal with the US. This points towards a possible rethink among countries over recent trade agreements struck with the Trump administration.In February, India agreed to a framework for an interim agreement with the US — the framework will now be signed only after “Washington puts in place a new tariff architecture which safeguards India’s comparative advantage in the US market”, a senior government official told this paper. Under the interim agreement, the US would impose a reciprocal tariff of 18 per cent on India’s exports. While that tariff rate had then meant that India was placed favourably compared to some of its competitors, post the US court ruling, that relative advantage has disappeared. Trump has used Section 122 of the 1974 Trade Act to impose a uniform tariff rate of 10 per cent on goods imported in the US. This means that the concessions make little sense without reciprocity. Moreover, the 10 per cent tariff is for a 150-day period, which ends in July. There is little clarity on what happens after that.AdvertisementOther challenges have arisen. A few days ago, the US Trade Representative launched an investigation under Section 301 of the Trade Act of 1974 for India and several other countries, citing “structural excess capacity and production in certain manufacturing sectors”. Reportedly, the fast-tracked nature of the investigation could lead to new tariffs in place from May. The Tax Foundation, a US-based think tank, also says that these “investigations could pave the way to re-impose the now unlawful IEEPA tariffs”. This suggests that a return to the era of low tariffs and a stable trading regime appears unlikely. In this unpredictable environment, India must use the space available to it to negotiate for greater market access. Its approach must be guided by the objective of seeking predictable, transparent and stable trade relations.