India’s exporters will now face a temporary 10% tariff on goods entering the United States. This is a major change from the previously agreed higher rates. The U.S. Supreme Court struck down broad tariff powers used by President Donald Trump. The White House then moved to reset the tariff terms, according to officials in Washington and trade analysts.
The Supreme Court ruled that the large tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977 were unconstitutional. This ruling limits the U.S. executive’s power to charge trade duties on its own. In response, the administration issued a new proclamation to impose a temporary global import surcharge of 10%, effective February 24, 2026, for 150 days under Section 122 of the Trade Act of 1974.
Under the new tariff system, all U.S. trading partners, including India, will face this uniform 10% duty on imported goods. This applies regardless of earlier negotiated rates under interim trade agreements. For India, this means a lower tax compared to the previous 18% reciprocal tariff agreed upon during interim trade talks. This followed the punitive duties imposed last year under Trump’s earlier tariff policy.
A White House official confirmed that the 10% tariff will stay in place until another legal authority is used or it is changed by Congress or a trade agreement.
The new tariff framework, though temporary, provides clearer terms for exporters in the short term. Analysts believe that moving from a mix of higher and specific duties to a clear 10% surcharge reduces uncertainty for Indian industry. It could also lower export costs compared to past agreements. However, the long-term effects will depend on potential negotiations between New Delhi and Washington, as well as how the U.S. government uses other legal provisions, like Sections 232 and 301, to address national security or unfair trade practices.
Industry experts and export organizations in India are currently examining the tariff change and its effects on key sectors. They are also focused on finalizing the broader bilateral trade agreement with the U.S., which could permanently change tariff and market access terms.
