How much tariff will India have to pay? (file photo)
Know the main points and gist of the news at a glance
Digital Desk, New Delhi. Good news has come for Indian exporters after the US Supreme Court's historic decision declaring President Trump's global tariffs 'illegal'. Trade experts and exporters said on Saturday that from February 24, only 10 percent temporary 'import surcharge' will be imposed on Indian goods.
In fact, according to the new orders issued by Washington, from February 24, 2026, only 10 percent temporary 'import surcharge' will be imposed on Indian goods imported into America.
In a major blow to Trump's key economic agenda in his second term, the US Supreme Court, in a 6-3 decision authored by Chief Justice John Roberts, said the president's tariffs on countries around the world were illegal and that he had abused his authority by imposing such large levies.
How much will be the tariff now?
Ajay Sahay, Director General, Federation of Indian Export Organizations (FIEO), said, "The US had imposed an additional tariff of 25 percent on India in August. Later, an additional 25 percent was imposed on the purchase of crude oil from Russia, taking the total tariff on India to 50 percent.
In early February, the two countries agreed to finalize an interim trade deal, under which Washington would reduce tariffs to 18 percent. Trump has removed the punitive 25 percent tariff on buying oil from Russia, while the remaining 25 percent still remains. But now, the tariff on Indian goods will be 10 percent."
The 10 percent temporary import surcharge is in addition to the existing MFN or import duty in the US. For example, if a product attracts 5% MFN duty, an additional 10% will be levied, making the effective duty 15%. Earlier, it was 5 plus 25 percent.
Trade deal should be revisited
Ajay Srivastava, founder of think tank Global Trade Research Initiative (GTRI), suggested that India should re-look at the interim trade deal with the US. He said that now, reciprocal tariffs apply to only 55 per cent of the value of Indian exports to the US, and about 40 per cent of the goods are in the exempted category.
India is the largest trading partner
It is noteworthy that during 2021-25, the US was India's largest trading partner in terms of goods. US's share in India's total exports is about 18 percent, 6.22 percent in imports and 10.73 percent in bilateral trade. In 2024-25, trade between the two countries is expected to reach USD 186 billion.
It is noteworthy that after the US Supreme Court declared Trump's tariffs illegal, Trump signed a declaration, under which a temporary import duty of 10 percent has been imposed on most goods entering the US.
Will be active from 24th February
Trump's announcement said, "I am imposing a temporary import surcharge of 10 percent on goods imported into the United States for 150 days, which will go into effect on February 24, 2026."
This tariff has been imposed under Section 122 of the Trade Act of 1974. Due to this, the effective import duty applicable to India will be temporarily reduced from 18 percent to 10 percent. The fee will take effect at 12:01 a.m. Eastern Standard Time on February 24 and will remain in place for 150 days unless extended by Congress. (With inputs from news agency PTI)
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