The Indian government has become alert after the latest developments regarding tariffs in America. The Commerce Ministry on Saturday clarified that it is thoroughly studying the possible impact of the US Supreme Court’s decision and the subsequent announcements made by the Presidential Administration. The ministry said in its statement that it has taken note of the recent decision of the US Supreme Court and the comments made by President Donald Trump in the press conference. Also, the impact of the new steps announced by the US administration is being analyzed, so that the impact on Indian trade and industry can be assessed.
Important decision of Supreme Court
The US Supreme Court, in a 6-3 majority decision, said that the sweeping tariffs imposed by the President on various countries were outside the scope of law and the move exceeded his jurisdiction. This decision is being considered a big blow to the economic policies of Trump’s second term.
10% temporary import surcharge for 150 days
A February 20 presidential proclamation following the decision stated that a temporary ad-valorem (value-based) import surcharge of 10 percent would be imposed on goods imported into the US for 150 days beginning February 24, 2026. This 10 percent duty will be in addition to the existing MFN (Most Favored Nation) or normal import duty.
Tariff fluctuations on India
America had imposed 25 percent reciprocal tariff on India in August. Subsequently, an additional 25 percent punitive duty was imposed on purchases of crude oil from Russia, taking the total tariff to 50 percent. However, recently an interim trade agreement was agreed between the two countries, under which a proposal was made to reduce the tariff to 18 percent. At present, the penal 25 per cent duty has been removed, while the remaining 25 per cent was applicable. Now after the new announcement, the effective tariff on Indian goods will be 10 percent from 24 February 2026.
Trade agreement process continues
Despite the Supreme Court’s decision, President Donald Trump has made it clear that there will be no change in the proposed trade agreement with India and negotiations will continue. The Indian delegation will meet with US officials in Washington from February 23, 2026, to finalize the legal draft of the first phase of the bilateral trade agreement.
India-US trade relations
The US has been India’s largest goods trading partner during 2021-25. America’s share in India’s total exports was about 18 percent, 6.22 percent in imports and 10.73 percent in total bilateral trade. India-US bilateral trade will reach $186 billion in the financial year 2024-25, of which India’s exports were $86.5 billion and imports were $45.3 billion. This reflects the strong economic ties between the two countries.
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