The White House has announced that India will temporarily face a 10 per cent tariff following US President Donald Trump’s new global tariff order. This tariff replaces the earlier duties under the International Emergency Economic Powers Act that were recently invalidated by the Supreme Court. Trump had previously reduced India’s reciprocal tariff from 25 to 18 per cent after both countries agreed on a trade framework.
The White House official confirmed that the new global tariff would set India’s rate at 10 per cent for now, replacing the existing 18 per cent. This change is temporary until a more suitable tariff rate can be established using a different authority. President Trump emphasized that the trade framework with India remains unchanged, with both countries maintaining their tariff positions.
The clarification from the White House clarifies that the 10 per cent global tariff under Section 122 is not an additional tariff but a replacement for the previously imposed duties on India. The administration hinted at invoking additional tariff authorities in the future, including Sections 232 and 301, which could potentially lead to higher tariff rates. Trump highlighted the administration’s commitment to pursuing fair trade terms with India through alternative statutory mechanisms.
