First the US Supreme Court’s decision on Trump’s tariffs, then Trump’s announcement of extra global tariffs. All the exporters of the world must be confused. If we talk only about India, then the biggest question that has arisen is how much tariff will be imposed on India now. There is a reason for this also. The US President had already reduced the 50 percent tariff to 18 percent. Now that the Supreme Court’s decision has come, India’s status has again become that of the most favored nation. Under which the average American tariff on India was only 3 percent. On the other hand, Trump has also announced the imposition of 10 percent extra global tariff. The big question is how much tariff will be imposed on Indian goods in America. Let’s try to understand all this mathematics?
Global tariff announced
A major change is expected in the tariffs imposed on Indian goods exported to America. After the Supreme Court’s decision, tariffs on most Indian goods have returned to the Most Favored Nation (MFN) level of about 3 percent. However, this tariff had become 50 percent in August 2025, which was recently reduced to 18 percent after the arrival of the US India Trade Deal Framework. However, out of this 50 percent, 25 percent extra tariff was for purchasing oil from Russia. However, the picture may once again become difficult due to the temporary 10 percent global tariff. US President Donald Trump said on February 21 that the new global 10 percent tariff will be implemented soon, within three days i.e. on February 24.
What did Trump say on tariffs?
For India, the US President indicated that the framework still remains the same. Trump said that nothing has changed in the Indian trade deal, we are not giving tariffs to India and India is giving tariffs to us. We have made a slight change (from the earlier situation). This increase started in April, when the US imposed 26 percent tariff on India. Washington imposed 50 percent tariff on Indian goods in August. In which 25 percent reciprocal tariff and 25 percent additional tariff was for purchasing Russian oil.
The Russia portion was removed through an executive order on February 6, reducing the effective tariff to 25 percent. The February 6 executive order stated that India has promised to stop importing Russian oil directly or indirectly, stated that it will purchase United States energy products from the United States, and recently committed to a framework with the United States to increase defense cooperation over the next 10 years. After which the extra duty of 25 percent was abolished.
Under a mutual agreement reached earlier this month, tariffs were expected to further reduce to 18 percent after a new executive order is issued and the first part of the trade agreement is completed. However, this reduction never occurred completely.
Effect of Supreme Court’s decision
Now the US Supreme Court has abolished the mutual tariffs imposed under emergency rules, due to which the duty on Indian goods has actually come down to the most favored nation level. Before the tariff increase, the average weighted duty on Indian exports was about 3 percent. But this relief may not be complete. In a briefing after the court’s decision, US President Donald Trump announced a 10 percent global tariff under Section 122 of the Trade Act of 1974, indicating it would remain in place for 150 days unless extended by Congress.
Trump said I don’t need to ask Congress (on additional tariffs), if I ask I’ll probably get it, and said an investigation is underway to impose what he described as the right tariffs. He also indicated that further investigation under Section 301 of the Trade Act of 1974 may lead to additional levies. Right now, China, Canada and Mexico face Section 301 tariffs, but they have managed to get exemptions on a large portion of trade.
For now, most Indian exports attract a baseline Most Favored Nation duty of about 3 percent, along with a temporary 10 percent global tariff if implemented after the executive order. Exemptions on mobile phones and pharma, which currently do not attract any tariff under the Reciprocal Order, are likely to remain in the new regime. Sector-specific tariffs will continue to be applicable on steel and automobiles under separate national security provisions like Section 232.