Indian exports to the United States will face a reduced 10% reciprocal tariff for 150 days starting February 24 after President Donald Trump announced a temporary global import surcharge following a US Supreme Court ruling that struck down his earlier sweeping duties.

New 10% US Tariff Replaces Higher Reciprocal Duties

Under a White House proclamation dated February 20, a 10% ad valorem surcharge will apply to goods imported into the US. This replaces the earlier country-specific reciprocal tariff system. India had previously faced a 25% reciprocal tariff, and at one point an additional 25% penalty over its purchases of Russian crude oil, pushing total duties to 50%.

After negotiations on an interim trade framework, Washington reduced India’s rate to 18% and removed the additional penalty, though that revision had not yet been implemented. With the new order, Indian goods will now attract a flat 10% surcharge on top of existing Most Favoured Nation (MFN) duties. For instance, a product with a 5% MFN tariff will now face a total duty of 15%, compared with 30% earlier.

The temporary 10% measure will remain in place for 150 days. There is no clarity yet on what tariff structure will apply after that period.

Exemptions and Sectoral Tariffs Still in Place

Certain goods are exempt from the temporary surcharge, including select critical minerals, energy products, agricultural items, pharmaceuticals, electronics and vehicles. However, sector-specific tariffs remain unchanged. Duties of 50% on steel, aluminium and copper, and 25% on certain auto components, continue to apply.

India-US Trade Deal Talks Continue

The tariff reset comes as India and the US work toward finalising the first phase of a bilateral trade agreement. An Indian delegation is scheduled to visit Washington from February 23 to finalise the legal text. Commerce Minister Piyush Goyal has said the agreement could be signed next month and operationalised in April. President Trump has said the Supreme Court ruling does not alter ongoing trade deal discussions with India.

Expert View: Reassess Trade Pact Gains

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