WITH the US Supreme Court striking down President Donald Trump’s global tariffs and Washington issuing a new order imposing a temporary 15 per cent import surcharge, Indian goods will now face only a 15 per cent reciprocal levy from February 22, trade experts and exporters said on Saturday. Earlier this month, both countries agreed to finalise an interim trade deal, under which Washington will cut down the tariffs to 18 per cent. So far, the punitive 25 per cent has been removed.

 

The remaining 25 per cent exists. But now, after the proclamation, the tariffs on Indian goods will be 10 per cent, Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. The 15 per cent levy is over and above the existing MFN or import duties in the US. For instance, if a product faces a 5 per cent MFN duty, an additional 10 per cent will be imposed, taking the effective duty to 15 per cent. Earlier, this was 5 plus 25 per cent. Earlier Think tank Global Trade Research Initiative (GTRI) had said: “Reciprocal tariffs are down to 10 per cent now”. GTRI Founder Ajay Srivastava suggested that India should re-evaluate the interim trade deal with the US.

 

Now, the reciprocal tariffs apply only on 55 per cent of the value of Indian exports to the US, he said, adding that about 40 per cent of goods are in the exempted categories. However, the sectoral tariffs (steel, aluminium, copper - 50 per cent, and a few auto components - 25 per cent) will continue. In the wake of the US Supreme Court’s decision on tariffs, Trump said there is no change in the trade deal with India and emphasised that the “India deal is on”. During 2021-25, the US was India’s largest trading partner in goods.

 

The US accounts for about 18 per cent of India’s total exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade. Earlier this month, as the US and India announced they reached a framework for an Interim Agreement on trade, Trump issued an Executive Order removing the 25 per cent punitive tariffs imposed on India for its purchases of Russian oil, with the US President noting the “commitment” by New Delhi to stop directly or indirectly importing energy from Moscow and purchase American energy products. Under the trade deal, Washington will charge a reduced reciprocal tariff on New Delhi, lowering it from 25 per cent to 18 per cent. When asked about the deal with India, Trump said “nothing changes”. In 2024-25, the bilateral trade touched USD 186 billion (USD 86.5 billion exports and USD 45.3 billion imports).