Tariff Twist: India’s 18% Duty Cut to 10% After US Court Ruling

India will, for now, be subject to a 10% tariff under a newly announced global trade measure introduced by US President Donald Trump, the White House has clarified. 

The move comes after the US Supreme Court struck down the administration’s earlier use of emergency powers to impose certain trade duties.

The new tariff regime replaces duties that had previously been applied under the International Emergency Economic Powers Act (IEEPA). Officials indicated that the 10 per cent rate will serve as an interim arrangement while the administration explores alternative legal tools to implement revised or country-specific tariff levels.

Earlier, India’s tariff rate had been brought down from 25 per cent to 18 per cent following a framework agreement between New Delhi and Washington aimed at easing trade tensions. However, the recent court ruling forced the US administration to abandon its earlier legal route and shift to Section 122 authority, under which the 10 per cent global tariff has now been introduced.

According to US officials, the revised 10 per cent duty is not an additional burden but temporarily replaces the previous 18 per cent rate applicable to India.

President Trump described the India-US trade understanding as “fair” and maintained that tariffs would continue to be part of America’s trade strategy. At the same time, he indicated that the administration retains the option of invoking other trade laws, such as Sections 232 and 301, which could potentially allow for higher tariff rates in the future.

The White House has also urged trade partners to adhere to the terms of their agreements, signalling that further adjustments may depend on compliance and ongoing negotiations.

The fluid nature of US trade policy under the Trump administration is quite visible by now. While strategic cooperation between India and the US has expanded in areas such as defence, technology and Indo-Pacific security, trade relations have periodically encountered friction over tariffs and market access.

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