Just as exporters were adjusting to changing US trade policies, fresh uncertainty has surfaced again.
Indian exports to the US will attract an additional 10% tariff for 150 days starting 24th February, after the US Supreme Court struck down the Trump administration’s earlier sweeping duties. However, confusion remains as US President Donald Trump announced a possible hike to 15%, though no official order has been issued yet.
The 10% levy will be in addition to existing MFN duties. For instance, a product facing a 5% duty will now attract a 15% duty (5% + 10%). Earlier, exporters were dealing with a much steeper 25% additional tariff.
Exporters say the lack of clarity is affecting business sentiment. Industry bodies have flagged uncertainty over whether the rate will remain at 10% or increase to 15%, and what will happen after the 150 days.
The US remains India’s largest goods trading partner, accounting for about 18% of total exports. In 2024-25, bilateral trade stood at $186 billion.
For now, while the immediate tariff burden has eased, the absence of long-term clarity continues to weigh on exporters.
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