India now faces lower tariff rate of 10% with Trump’s proclamation on new levies after U.S. Supreme Court verdict

India benefits from a reduced 10% tariff rate after Trump's new import surcharge following a Supreme Court ruling against his tariffs.

India now faces a lower tariff rate of 10%, down from 18%, after U.S. President Donald Trump announced a new global levy on items imported into America in the wake of the Supreme Court verdict against his sweeping tariffs.

In a proclamation titled ‘Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems’, Mr. Trump said he is imposing, for a period of 150 days, a “temporary import surcharge of 10% ad valorem” on articles imported into the United States, effective February 24.

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Given this new tariff rate of 10%, which will be applicable on countries around the world, Indian goods being imported into the U.S. would no longer be subject to the 18% tariff rate that had been decided on following the announcement of a framework for an Interim Agreement on trade between India and the U.S.

In a major setback to Mr. Trump’s pivotal economic agenda in his second term, the U.S. Supreme Court, in a 6-3 verdict written by Chief Justice John Roberts, ruled that the tariffs imposed by Mr. Trump on nations around the world were illegal and that the president had exceeded his authority when he imposed the sweeping levies.

Earlier this month, as the U.S. and India announced they reached a framework for an Interim Agreement on trade, Mr. Trump issued an Executive Order removing the 25% punitive tariffs imposed on India for its purchases of Russian oil, with the U.S. President noting the commitment by New Delhi to stop directly or indirectly importing energy from Moscow and purchasing American energy products.