‘Implications under review’: India on Trump tariff ruling and surcharge
New Delhi: The Commerce Ministry on Saturday said the government is closely examining recent developments related to US tariffs and their potential implications for India’s trade and economic interests.
“We have noted the US Supreme Court judgement on tariffs yesterday (Friday). US President Donald Trump has also addressed a press conference in this regard. Some steps have been announced by the US administration. We are studying all these developments for their implications,” the ministry said in a statement.
US Supreme Court ruling on Trump tariffs
In a significant setback to President Donald Trump's economic agenda for his second term, the US Supreme Court, in a 6–3 verdict authored by Chief Justice John Roberts, ruled that the tariffs imposed by the president on multiple countries were illegal, stating that he had exceeded his authority in introducing sweeping levies.
Also Read | US Supreme Court blocks Trump's broad tariffs, limiting presidential economic powers
Subsequently, in a proclamation dated February 20, Trump announced a temporary import surcharge of 10 per cent ad valorem on goods imported into the United States for a period of 150 days, effective February 24, 2026.
Impact on India-US trade and tariffs
The United States had imposed a reciprocal tariff of 25 per cent on India in August. An additional 25 per cent duty was later levied over India’s purchase of Russian crude oil, taking the total tariffs on Indian goods to 50 per cent.
Earlier this month, India and the US agreed to finalise an interim trade deal under which Washington would reduce tariffs to 18 per cent. The punitive 25 per cent additional levy has since been withdrawn, while the remaining 25 per cent continued.
Following the latest proclamation, tariffs on Indian exports to the US will now stand at 10 per cent, over and above the existing Most Favoured Nation (MFN) import duties applicable in the US.
Also Read | From 18 to 10 per cent: How legal blow changes US trade terms with India
Despite the Supreme Court ruling, Trump said there is no change in the India-US trade deal and reiterated that the agreement with India remains on track.
Bilateral trade and upcoming talks
An Indian delegation is scheduled to visit Washington from February 23, 2026, to finalise the legal text for the first phase of the proposed bilateral trade agreement.
During 2021–25, the United States was India’s largest trading partner in goods. The US accounts for nearly 18 per cent of India’s total exports, 6.22 per cent of imports and 10.73 per cent of overall bilateral trade.
Also Read | Trump-era tariffs overturned: How will US businesses get their billions back?
In 2024–25, India-US bilateral trade reached USD 186 billion, including USD 86.5 billion in exports and USD 45.3 billion in imports.
The government’s review of the US tariff developments is expected to assess the broader impact on Indian exports, trade flows and the ongoing negotiations for a comprehensive India-US trade agreement.
PTI