NEW YORK/WASHINGTON, Feb 21: India will now face a reduced US tariff rate of 10 per cent, down from 18 per cent, after President Donald Trump announced a temporary global import surcharge following a Supreme Court ruling that struck down his sweeping tariffs.
In a proclamation imposing a 150-day “temporary import surcharge of 10 per cent ad valorem” on goods entering the United States from February 24, Trump effectively lowered the duty applicable to Indian exports, which had earlier been set at 18 per cent under a proposed interim India-US trade framework.
The move comes after the US Supreme Court, in a 6-3 verdict authored by Chief Justice John Roberts, ruled Trump’s earlier global tariffs illegal, saying he exceeded presidential authority in imposing them.
Earlier this month, Washington and New Delhi had agreed on a trade framework under which the US would cut reciprocal tariffs on India from 25 per cent to 18 per cent after Trump lifted punitive duties linked to India’s purchases of Russian oil. With the new universal 10 per cent surcharge, Indian goods will now be taxed at a lower rate than envisaged in that interim deal.
A White House fact sheet said Trump invoked Section 122 of the Trade Act of 1974 to address “fundamental international payment problems” through temporary import restrictions. The 10 per cent duty, effective 12:01 am EST on February 24 for 150 days, will exempt certain critical minerals, energy products, key agricultural items, pharmaceuticals, select electronics, vehicles and aerospace goods deemed vital to the US economy.
Trump sharply criticised the Supreme Court ruling, calling the justices “fools and lapdogs”, but insisted the India trade arrangement remains unchanged. “Nothing changes…India will be paying tariffs and we will not,” he said, adding his relationship with Prime Minister Narendra Modi is “great” and that New Delhi has reduced Russian oil imports at his request.
He also reiterated his claim that he used tariff threats to halt a potential India-Pakistan conflict, saying both sides backed down after being warned of steep US duties if hostilities continued. (Agencies)
