US President Donald Trump departs after he delivered remarks at the House Republican Party (GOP) member retreat at the Kennedy Center in Washington, DC, on January 6, 2026. (Photo by Mandel NGAN / AFP)
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Moneycontrol09-01-2026, 20:27

Trump's Tariff 'Plan B': Court Loss Won't End Trade War, India Faces Prolonged Uncertainty

  • A court ruling against Trump's tariff regime is unlikely to end the trade saga, forcing the administration to change tactics.
  • Legal experts and economists state that even if courts strike down Trump’s preferred tariff mechanism, alternative legal routes exist.
  • US Treasury Secretary Scott Bessent confirmed at least three other mechanisms under the 1962 Trade Act could sustain tariffs.
  • Fallback options include Section 232 (national security), Section 301 (unfair trade practices), Section 122 (balance-of-payments), and Section 201 (safeguard measures).
  • For India, this means prolonged uncertainty, as new duties could quickly come into force via alternative legal routes, complicating trade negotiations.

Why It Matters: Trump's administration has multiple fallback options to continue tariffs, ensuring prolonged trade uncertainty for countries like India.

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