Washington, Feb 21, 2026 — U.S. President Donald Trump has said that the interim trade agreement signed with India will remain in force despite a recent ruling by the Supreme Court of the United States declaring his tariff authority unlawful.
Responding to reporters, Trump confirmed that the deal reached with India is still valid and that all agreements negotiated under the threat of tariffs would continue. “The agreement with India stands. All the deals remain in effect. We will just do it in a different way, under a different legal authority,” he said.
The Supreme Court ruled 6–3 that Trump’s use of emergency powers under a 1977 law to impose tariffs was unlawful. The decision casts uncertainty over the administration’s broader tariff strategy but does not automatically nullify trade agreements concluded during that period.
On February 6, 2025, Trump and Indian Prime Minister Narendra Modi announced the framework of an interim trade agreement. The deal is expected to be formally signed in March and come into effect in April.
Praising Modi, Trump described him as “a great gentleman” and “much smarter” than previous U.S. negotiators. He claimed the new agreement ensures that India pays tariffs while the United States does not.
However, the agreement has drawn criticism within India. Opposition leader Rahul Gandhi has labeled the deal a “trap,” while other critics argue it represents a humiliating concession to Washington.
Analysts and farmer groups in India have raised concerns that subsidized American agricultural products could flood the Indian market, threatening the livelihoods of millions — particularly small farmers and cotton growers. Protests have already begun in some regions.
Meanwhile, questions remain over whether the Trump administration will refund tariffs already collected under the invalidated authority. Trump said the Supreme Court ruling did not address the issue directly and suggested that resolving it through the courts could take up to five years.
