In Wake of Additional 10% Tariffs Imposed by Trump For 150 Days, Confusion, Uncertainty Among Exporters
New Delhi: Starting from Tuesday (February 24), Indian exports to the US will attract a 10% tariff for 150 days, as a result of US president Donald Trump’s decision to impose the 10% tariff on all countries on February 21. However, exporters and the trading community continue to face uncertainty as Trump had earlier hiked the tariffs to 15% but no official order has been issued in this regard, reported Press Trust of India.
Trump’s February 21 announcement imposing the 10% tariffs for 150 days using a federal law known as Section 122, came after the US Supreme Court had struck down the sweeping tariffs introduced by his administration. Just hours after imposing the fresh 10% tariff, Trump increased the tariffs from 10% to 15%.
“As per the current order, Indian goods will attract 10% tariffs from February 24. But we are keeping our fingers crossed, as a new order for 15% tariffs has not been issued by the US so far. But uncertainty is there," said Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai, reported PTI.
The 10% levy will be over and above the existing most favoured nation (MFN) or import duties in the US. If a product already faces an MFN or import duties, the 10% tariff will be added to it. For instance, if a product has a 5% MFN duty, after adding the 10% tariff, the total duty on the product would be 15%.
Indian exporters said that there is also uncertainty over the fact that what will happen after the 150 days.
"We need to bring down the curtains on this tariff drama now. Clarity and certainty over these tariffs will help us in pushing exports to the US," said Mumbai-based exporter and founder chairman of Technocraft Industries India Sharad Kumar Saraf.
In August 2025, the US had imposed a 25% reciprocal tariff on India. It later imposed another additional 25% duty citing India’s purchase of Russian crude oil. It had taken the total tariffs on India to a whopping 50%.
The 25% punitive tariff imposed on India for purchase of Russian oil was removed by the US after both the countries agreed on a framework to finalise an interim trade deal earlier this month. As per the terms of the trade deal between India and US, Washington will cut down the tariffs to 18%. However, the deal is yet to be officially signed and even after removing the punitive tariff for purchase of Russian oil, the remaining 25% tariff still exists.
It was at this juncture that the US Supreme Court gave its verdict, striking down the tariffs introduced by the Trump administration.
Between 2021-25, the US was India's largest trading partner in goods. The US presently accounts for about 18% of India's total exports, 6.22% of its imports, and 10.73% of its bilateral trade, reported PTI.
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