The movement regarding American tariffs has again intensified across the world. The main reason for this is that the US Supreme Court gave a big blow by canceling the global import duty imposed by President Donald Trump with a majority of 6-3. The court, led by Chief Justice John Roberts, clearly stated that the President had exceeded his authority and imposed these tariffs, which are illegal. Immediately after this decision, Trump made a new announcement on February 20 and further increased the stir in the global world regarding tariffs. Trump’s announcement states that a temporary additional duty of 10 percent will be imposed on goods imported into America for 150 days from February 24, 2026, which has again increased uncertainty in global trade. After this decision, the reciprocal tariff on Indian products will now reduce to only 10 percent. Earlier, America had imposed a tariff of 25 percent on India in August. Later, an additional tariff of 25 percent was imposed on India for purchasing crude oil from Russia. In this way the total tariff reached 50 percent.
Relief for Indian exporters
When American tariff on India reached 50 percent. After this, recently the framework of an interim trade agreement was prepared between India and America, under which it was agreed to reduce the tariff to 18 percent. During this period, the penal fee of 25 percent was removed. In such a situation, after the court’s decision and Trump’s new announcement, now only 10 percent additional duty will be applicable on Indian goods in America.
Now understand how this 10 percent will be calculated?
It can be understood that this 10 percent duty will be imposed on top of the existing import duty (MFN duty). For example, if a product already has a five percent duty, now ten percent will be added to it. That means a total fee of 15 percent will have to be paid. Earlier this fee was 5 + 25 percent i.e. up to 30 percent.
Also understand what the experts say
Reactions are coming from all over the world on this tariff game of Trump. In such a situation, Director General of Federation of Indian Export Organizations (FIEO) Ajay Sahay said that now Indian exporters will get relief because the tariff has reduced to 10 percent. Ajay Srivastava, founder of the think tank ‘Global Trade Research Initiative’ (GTRI), has suggested that India should re-review the interim trade agreement with the US. However, according to Ajay Srivastava, this 10 percent tariff will now be applicable only on 55 percent of Indian exports. About 40 percent of the goods are already in the discount category. But the sectoral tariff of 50 percent on steel, aluminum and copper and 25 percent on some auto parts will still continue.
Trump’s stance after Supreme Court’s decision
After the Supreme Court’s decision on tariffs, President Trump said that there has been no change in the trade agreement with India and the trade agreement with India will continue. Let us tell you that earlier, when both the countries had announced the framework of the interim trade agreement, Trump had issued an executive order removing the 25 percent additional tariff imposed on buying oil from Russia. He had said that India has promised to stop importing energy directly or indirectly from Russia and buy American energy products.
Now understand the condition of India-America trade
It is noteworthy that America has been India’s largest trading partner between 2021 and 2025. America’s share in India’s total exports is about 18 percent. The share in imports is 6.22 percent. The share in total bilateral trade is 10.73 percent. Not only this, the total trade between India and America reached $186 billion in the financial year 2024-25. This includes exports of $86.5 billion and imports of $45.3 billion.