US Tariff Uncertainty After Supreme Court Ruling Disrupts Talks With EU, India, Japan

India and the European Union have deferred trade talks with the United States as governments assess the fallout from a U.S. Supreme Court ruling on tariffs, while Japan has sought assurances that it will receive treatment no worse than under existing agreements.

The Supreme Court last week invalidated the reciprocal tariff framework imposed by President Donald Trump under the International Emergency Economic Powers Act, prompting the Trump administration to look at alternative legal avenues.

The ruling has injected fresh uncertainty into ongoing trade negotiations after the Trump administration moved quickly to signal new tariffs.

Washington imposed a 10 percent baseline tariff on imports from all countries on Feb. 20, but Trump said the rate could be raised to 15 percent, prompting concerns among trading partners that previously agreed limits may no longer hold.

The U.S.–EU understanding reached in July 2025 was built around a 15 percent cap on tariffs on most European goods, while tariffs on U.S. industrial goods entering the EU would be reduced to zero.

The agreement also rested on commitments by both sides not to introduce new unilateral measures during ratification.

The European Parliament’s trade committee on Feb. 23 postponed a planned vote on ratification after Trump indicated that he would proceed with new tariffs.

Lawmakers said it was unclear whether the fresh measures would violate the terms of the agreement. EU lawmakers are expected to reconvene on March 4 to assess whether the United States has clarified its position.

On Jan. 23, European Commission spokesman Olof Gill said Washington appeared to be retreating from the July understanding.

“A deal is a deal,” he said. “So now we are simply saying to the U.S., it’s up to you to clearly show to us what path you are taking to honour the agreement.”

Following the Supreme Court’s Feb. 20 ruling, Gill said in a post on X that the EU remained in contact with Washington as it sought clarity on how the administration intended to respond.

India has also slowed engagement with the United States over tariffs.

Finance and corporate affairs minister Nirmala Sitharaman told The Hindu media outlet on Feb. 23 that New Delhi’s commerce ministry was “reviewing the situation.”

“The delegation will have to take a call on when they’re going to go for further negotiations,” she said.

Trump introduced a 26 percent levy on Indian goods in August 2025, aimed at pressuring the Indian government to lower its trade barriers.

In an Aug. 6, 2025, executive order, Trump implemented an additional 25 percent tariff on India, saying that its government was “directly or indirectly importing Russian Federation oil.”

Since the Russia–Ukraine war started in 2022, India has been one of Russia’s most significant trading partners, with annual bilateral trade reaching almost $69 billion.

With crude oil imports exceeding $52 billion last year, India accounted for an estimated one-third of Russia’s petroleum exports, driven by a sanctions-driven discount.

Japan said on Feb. 24 that it had asked the United States to ensure that its treatment under a new tariff regime would be as favorable as in an existing agreement.

Japan’s trade minister and U.S. Commerce Secretary Howard Lutnick affirmed on a call on Feb. 23 that the two countries would implement the trade deal struck last year “in good faith and without delay,” the Japanese trade ministry stated.

On Feb. 20, the Supreme Court ruled 6–3 that some of Trump’s global tariffs exceeded an emergency powers law passed by Congress.

Chief Justice John Roberts wrote the majority opinion, saying Trump’s tariffs didn’t fit with the language of the International Emergency Economic Powers Act. Trump had invoked that law to impose a series of tariffs, including reciprocal tariffs on dozens of countries and drug-trafficking levies on Mexico, Canada, and China.

With trillions of dollars at stake, the decision could have major implications for the nation’s economy. Trump’s tariffs have targeted a broad range of activities, but the ones in this case focused on combating drug trafficking and correcting trade imbalances with other countries.

U.S. Trade Representative Jamieson Greer told CBS News’ “Face the Nation” program on Feb. 22 that he had already spoken with his EU counterpart and would speak with officials from other countries.

“I haven’t heard anyone yet come to me and say the deal is off,” Greer said.

“They want to see how this plays out.”

Reuters, Sam Dorman, Victoria Friedman, and Andrew Moran contributed to this report.