New Delhi, February 23 Indian exports to the US will face an additional 10 per cent tariff, instead of the current 25 per cent, for 150 days starting Tuesday, following a ruling by the US Supreme Court that invalidated President Trump’s previous tariffs.
However, exporters have expressed uncertainty, as US President Donald Trump has announced a tariff increase to 15 per cent, though no official order has been issued.
Following the Supreme Court’s ruling against his previous tariffs last week, Trump imposed a 10 per cent tariff on all countries, including India, from February 24 for 150 days.
Within hours of announcing this, Trump also announced a tariff increase to 15 per cent.
“According to the current order, Indian goods will face a 10 per cent tariff from February 24. However, we are waiting for clarification, as a 15 per cent tariff order has not yet been issued by the US. But there is uncertainty,” said Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO).
There is also confusion regarding these tariffs, as there is no clarity on what will happen after the 150-day period.
“We need to resolve this tariff issue,” said Sharad Kumar Saraf, founder chairman of Technocraft Industries India, a Mumbai-based exporter.
Saraf noted that the US is a key export destination for Indian exporters, and the uncertainty surrounding import duties impacts business sentiment.
“Clarity and certainty regarding these tariffs will help us boost exports to the US,” he added.
The 10 per cent tariff will be in addition to existing Most Favoured Nation (MFN) or import duties in the US.
For example, if a product faces a 5 per cent MFN duty, an additional 10 per cent will be imposed, resulting in an effective duty of 15 per cent. Previously, this was 5 plus 25 per cent. If 15 per cent is implemented, the effective duty will be 5 plus 15 per cent.
Aqeel Panaruna, Chairman of Florence shoe company, said that the recent clarification by the US Supreme Court ruling on tariffs has improved visibility for global footwear and leather sourcing, with effective duties expected to fall in the 10-15 per cent range.
He said the ruling applies uniformly across Asian sourcing countries, helping restore predictability for US brands.
“For the footwear and leather industry, which is one of the most labour-intensive and service-driven global manufacturing sectors, tariff stability is critical. Long product development cycles, tight margins, and complex supplier coordination require predictable landed costs and reliable execution,” Aqeel said.
Within this framework, India remains a competitive sourcing destination. Its large, skilled workforce, expanding manufacturing capacity, and standards allow suppliers to meet US buyers’ requirements on quality, delivery timelines, and flexibility, even in a changing trade environment, he added.
“Footwear manufacturing is no longer solely driven by cost. Service reliability, workforce continuity, and long-term supplier relationships are increasingly central to sourcing decisions. India’s ability to provide consistent labour availability and scalable production helps reduce supply-chain risk for US brands,” Aqeel noted.
As US brands reassess global sourcing strategies, India's competitiveness positions it as a strong partner for future growth in footwear and leather manufacturing, he said.
Yogesh Gupta, Managing Director of Kolkata-based Megaa Moda, a major processor and exporter of seafood products, said that the reduction in reciprocal tariffs to 10 per cent will help increase shipments in the American markets.
The removal of the 15 per cent uncertainty will provide clearer guidance to exporters, he added.
In a major setback to Trump's economic agenda in his second term, the US Supreme Court ruled last week that Trump’s tariffs on nations around the world were illegal and that the president had exceeded his authority when imposing the sweeping levies using the International Emergency Economic Powers Act (IEEPA) of 1977.
The US had imposed a 25 per cent reciprocal tariff on India in August 2025. Later, an additional 25 per cent duty was imposed on buying Russian crude oil, bringing the total tariffs on India to 50 per cent.
India and the US had agreed on a framework to finalise an interim trade deal, under which Washington would cut tariffs to 18 per cent. So far, the 25 per cent tariff has been removed. The remaining 25 per cent still exists.
To sign and implement the first phase of the bilateral trade agreement, the framework has to be converted into a legal document.
To finalise the legal text for the first phase of the bilateral trade agreement, an Indian team was scheduled to meet its counterparts in Washington from February 23-26, 2026. However, this visit has now been postponed.
During 2021-25, the US was India's largest trading partner in goods. The US accounts for about 18 per cent of India's total exports, 6.22 per cent of its imports, and 10.73 per cent of its bilateral trade.
In 2024-25, bilateral trade totalled USD 186 billion (USD 86.5 billion in exports and USD 45.3 billion in imports).
