Tariff cuts, court rulings and trade talks reshape India–US ties

The U.S.–India trade deal has sharply reduced average U.S. tariffs on many Indian goods to around 18% from roughly 50%, triggering a rally in export-oriented Indian stocks and optimism for the rupee. At the same time, frictions persist: the U.S. has imposed steep duties of about 126% on Indian solar products, and parts of Washington’s tariff regime have been challenged, including a key Supreme Court ruling striking down certain U.S. tariffs that benefits Indian exporters. Both governments are deepening supply-chain cooperation while keeping the door open to ‘rebalance’ the agreement if conditions change. For investors, the shifting tariff landscape is creating both upside for Indian exporters and sector-specific risks tied to future trade negotiations.