How India's Economy Works The Legal Setback to Trump's Tariffs is an Advantage for India. This Is How
In this episode, journalist Puja Mehra speaks with economist Dr. Shekhar Aiyar about the recent US Supreme Court ruling that struck down the use of the International Emergency Economic Powers Act (IEEPA) as the legal basis for President Trump’s sweeping tariffs. As Washington recalibrates its trade strategy, Aiyar argues that the judgment is more than a legal setback — it reshapes the balance of power in ongoing trade negotiations, including those with India.
They discuss what this means for the current 15% global tariff, the earlier 50% duties imposed on Indian imports, and whether companies can realistically expect refunds. The episode also examines how the timing of the ruling intersects with India–US trade deal negotiations, and why India’s bargaining position may have improved significantly.
They also talk about the broader geopolitical implications of the decision — from the use of tariffs as strategic leverage to the erosion of the World Trade Organization’s dispute settlement system. As global trade becomes more fragmented, Aiyar makes the case for diversification, institutional reform, and a more assertive Indian role in shaping the next phase of multilateral trade rules. Tune in for insights on the reshaping of India’s trade strategy.
SHOW NOTES
(00:00) Introduction
(00:20) US Supreme Court Ruling on Trump Tariffs
(02:47) Impact on Indian Exports and Alternative Trade Instruments
(04:39) Prospects for Tariff Refunds for Indian Exporters
(06:30) Status of India-US Trade Deal Negotiations
(10:13) Limits of Executive Power in Setting High Tariff Rates
(11:10) Duration and Renewal of Section 122 Tariffs
(12:32) Recommendations for Indian Trade Negotiators
(14:55) Geopolitical Implications and Trade Diversification
(17:18) WTO Ministerial and Reforming Dispute Resolution
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