india-tariffs-reduced-to-10-after-us-supreme-court-verdict

India faces a revised 10 per cent US tariff, not 18 per cent, after President Donald Trump signed a fresh order imposing a temporary global levy, days after the Supreme Court of the United States struck down his earlier reciprocal tariffs.

The confusion arose after Trump initially indicated that the 18 per cent tariff on Indian goods, announced earlier this month, would remain in place. However, the White House later clarified that all countries with trade arrangements with the US would temporarily face a uniform 10 per cent tariff.

The new levy has been imposed under Section 122 of the Trade Act of 1974, a provision never previously used, which permits the President to impose tariffs of up to 15 per cent for 150 days to address trade imbalances. The 10 per cent duty will take effect from February 24 and would require Congressional approval to continue beyond the 150-day window.

The Supreme Court ruling had invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA), holding that the administration lacked authority to levy sweeping duties during peacetime. The decision effectively removed the legal foundation for the 18 per cent reciprocal tariff on India.

Also read: Trump imposes 10 per cent global tariffs after court setback

Before Trump’s “Liberation Day” tariffs, Indian goods faced an average US levy of around 3.5 per cent. If that baseline remains intact, India’s effective tariff could now stand at 13.5 per cent, the earlier 3.5 per cent plus the new 10 per cent, though Washington has yet to issue formal clarification.

Notably, Section 232 tariffs remain unaffected. Duties of 50 per cent on steel and aluminium and 25 per cent on certain auto components continue to apply.

The development comes as India and the United States are close to finalising an interim trade agreement. An Indian delegation is expected to visit Washington next week to seek clarity on the new tariff structure and its implications.

In New Delhi, Union Minister Pralhad Joshi said the government would study the Supreme Court judgment before issuing an official response. “Whatever the reaction needs to be given, that will be given by the Commerce Ministry and MEA,” he said.

The ruling has temporarily strengthened India’s negotiating position, even as the Trump administration explores legal options to reinstate the higher levy.