New Delhi, February 21: The United States of America (USA) will now impose only 10% tariff on India instead of 18%.
After the US Supreme Court declared President Donald Trump’s tariff illegal, he announced the imposition of 10% tariff on all countries within 3 hours. Donald Trump signed an order related to this on Friday. This tariff will be applicable on countries across the world from February 24.
After this decision of Trump, questions were being raised whether this will be an additional duty to the 18% tariff prescribed as per the interim trade agreement between India and America or only 10% tariff will be imposed on India.
Trump said that he is imposing a temporary 10% tariff on goods imported into America from February 24 for a period of 150 days.
The White House said in a statement that US trading partners, including India, who had entered into tariff deals with Donald Trump’s administration before the Supreme Court’s decision will now face a 10% duty, even if they had previously agreed to higher tariffs. Earlier, President Donald Trump said he was “deeply embarrassed” by the US Supreme Court justices who issued a “deeply disappointing” decision regarding the tariffs.
The US President imposed these reciprocal tariffs in 2025 and 2026. He took several other trade-related measures with national security in mind. Trump had stated that the purpose of imposing additional tariffs on other countries was to reduce the US trade deficit. However, this had dealt a significant blow to international trade.
Meanwhile, the US government agencies have been instructed to immediately stop collecting tariffs on goods from other countries. This means the US Supreme Court’s decision will soon come into effect. This will provide significant relief to US exporters who trade with the US, who will no longer have to pay reciprocal tariffs on their goods. Many countries around the world, including China, export a variety of goods, including everyday items, to the United States.
Chief Justice John Roberts wrote the ruling declaring Trump’s tariffs invalid and striking them down. This is being seen as a blow to Trump’s second-term economic agenda.
The new 10% tariff was imposed under the 1974 Act
The Trump administration imposed a new 10% tariff under Section 122 of the 1974 Trade Act. This act authorizes the US President to impose temporary, non-discriminatory tariffs for up to 150 days. Extensions of this tariff require US Congressional approval. This means that if Trump wishes to continue imposing a 10% tariff on other countries, he will have to obtain the approval of the US Parliament.
Major relief to exports from other countries, including India
The removal of reciprocal tariffs will also provide significant relief to India. However, in early February, the Trump administration announced a reduction in tariffs on India from 50% to 18%. He also announced an interim trade agreement with India. Officials from both countries are currently finalizing the framework of this agreement. It is expected to be signed by the two countries next month.
Experts say that following the US Supreme Court’s revocation of President Donald Trump’s sweeping tariffs and the US’s new order imposing a temporary 10 percent import duty, Indian goods will now be subject to only a 10 percent reciprocal duty from February 24, significantly reducing the burden compared to before.
It is noteworthy that the US Supreme Court, in a 6-3 majority decision, held that the President’s sweeping tariffs imposed on various countries were beyond the scope of the law.