US Tariffs on India Cut to 10% After Supreme Court Ruling

New Delhi: Following a major setback for US President Donald Trump by the US Supreme Court, the tariff rates on India have now been revised. India will now face only a 10% US tariff temporarily, replacing the earlier 18% rate.

New Global Tariff Order

The Trump administration has issued a new global tariff order, which will temporarily impose a 10% duty on India. This move comes after the Supreme Court struck down tariffs based on the International Emergency Economic Powers Act (IEEPA). A White House official clarified that the 10% tariff replaces the recently invalidated IEEPA-based duties.

Earlier this month, following an interim trade framework agreement between India and the US, tariffs on India were reduced from 25% to 18%. With the new order, the White House confirmed that, temporarily, India’s tariff rate would be 10% until a new authority implements a more appropriate rate.

Trump’s Earlier Comments

On Friday, President Trump had said, “Nothing will change regarding India in the trade framework. They (India) will pay the tariffs, and we will not. We have just made slight adjustments to the deal.”

However, the Supreme Court’s decision invalidated the use of IEEPA for imposing certain duties, raising questions about India’s previously announced 18% tariff rate. The White House response now confirms that, at least temporarily, India’s rate will drop to 10% under Section 122 authority.

Future Tariff Possibilities

The Trump administration has indicated that additional tariff authorities may be implemented in the coming weeks. During a press briefing, the President mentioned that other laws, including Section 232 and 301, remain available to support future action. When asked if tariffs could rise again, Trump replied, “Potentially higher. It depends on what we decide to implement.”

This development gives India temporary relief but also signals that tariff rates could be revised further depending on future US trade decisions.