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India to benefit from Trump’s new levy regime after SC’s verdict over sweeping tariffs

21 Feb 2026 Evaluate

In the wake of the Supreme Court verdict against the sweeping tariffs, the U.S. President Donald Trump has come up with a new global levy on items imported into America. With this new levy, India will face a lower tariff rate of 10%, down from 18%, a major relief to exporters. In a proclamation titled ‘Imposing a Temporary Import Surcharge to Address Fundamental International Payments Problems’, 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.

Under the temporary import surcharge of 10% applicable to countries worldwide, Indian goods imported into the U.S. will no longer be subject to the previously proposed 18% tariff that followed the announcement of a framework for an interim trade agreement between India and the U.S. In a significant setback to Trump’s pivotal economic agenda, the U.S. Supreme Court, in a 6-3 verdict, ruled that the tariffs imposed by Trump on countries worldwide were unlawful and he had exceeded his authority in enacting the sweeping levies.

About the framework for an interim agreement on trade with India, expected to be signed soon, stands in the wake of the Supreme Court ruling, Trump said ‘nothing changes’. He said ‘The India deal is on…all the deals are on, we're just going to do it’ in a different way’. Earlier this month, as the U.S. and India announced they reached a framework for an Interim Agreement on trade, 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. Under the trade deal, Washington would charge a reduced reciprocal tariff on New Delhi, lowering it from 25% to 18%.

Meanwhile, Trump signed the proclamation ‘imposing a temporary import duty to address fundamental international payments problems and continue the Administration’s work to re-balance trade relationships to benefit American workers, farmers, and manufacturers’. As per proclamation, some goods will not be subject to the temporary import duty because of the needs of the U.S. economy or in order to ensure the duty more effectively addresses the fundamental international payments problems facing the United States.

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