Trump’s 10% global tariffs: How much will India pay after the US President’s executive order post SC ruling?

The US Supreme Court on 20 February invalidated President Donald Trump’s sweeping tariffs imposed under a national emergency law, delivering a major blow to his trade policy, ahead of the US mid-term polls scheduled later this year.

The apex court held 6-3 that the Trump administration exceeded its legal authority to impose tariffs beginning in February 2025 under the International Emergency Economic Powers Act (IEEPA) of 1977, a law traditionally used to address national security threats.

However, the Trump administration, in its fact sheet, has stated that “tariffs will continue” and are a “critical tool” for Trump to “protect American businesses and workers, reshore domestic production, lower costs, and raise wages”.

How did Donald Trump react to the US Supreme Court ruling?

Trump called the judgment a “terrible decision” and announced that he has signed a 10% global tariff under Section 122 of the Trade Act of 1974. This authority allows for a temporary import surcharge (up to 15%) for 150 days to address balance-of-payments deficits.

According to a Bloomberg report, however, this is a temporary measure as the provision puts a 150-day limit on duty impositions and requires approval from Congress for any further extensions.

The temporary import duty will take effect on 24 February 24 at 12.01am, as per the White House fact sheet titled ‘President Donald J. Trump Imposes a Temporary Import Duty to Address Fundamental International Payment Problems’.

Speaking to reporters at the White House, he added, “Other alternatives will now be used to replace the ones that the court incorrectly rejected. We have alternatives. Could be more money, we will take in more money... We have taken in hundreds of billions of dollars. We will continue to do so.”

Trump added that tariffs imposed under Section 232 (National Security) and existing Section 301 (Unfair Trade) remain “in full force and effect”, as they were not affected by the IEEPA ruling, the report added.

Notably, tariffs imposed under Section 301 would also need country-specific probes with a chance for the affected companies or countries to make their case, and where officials would need to conclude the country has violated a trade agreement or engaged in practices that burden US trade in order to impose the tariffs, it added.

Where does India stand? Do we now pay zero tariffs?

Not according to Trump. Answering questions at the White House following the SC's order, the US president said there is “no change” in the trade deal with India and that the agreement is “still on”, according to a PTI report.

Trump reportedly also said relations with Prime Minister Narendra Modi are “great” and India has significantly reduced oil purchases from Russia. He also repeated a claim that he stopped a war between India and Pakistan in 2025.

“I think my relationship with India is fantastic, and we're doing trade with India. India pulled out of Russia. India was getting its oil from Russia. And they pulled way back at my request, because we want to settle that horrible war where 25,000 people are dying every month,” Trump said at the White House news conference.

Trump added that it was his tariffs that “stopped the war between India and Pakistan”, stating: “And I did it largely with tariffs. I said, ‘Look, you’re going to fight, that’s fine, but you’re not going to do business with the US, and you’re going to pay a 200% tariff, each country’. And they called up and they said, ‘we have made peace’.”

WATCH | ‘All deals are on… just going to do it (differently)’: Donald Trump

On the specifics of the deal with India, Trump added, “Nothing changes. They'll be paying tariffs, and we will not be paying tariffs. So, the deal with India is that they pay tariffs. This is a reversal for what it used to be, as you know, India, and I think Prime Minister Modi is a great gentleman, a great man, actually, but he was much smarter than the people that he was against in terms of the US, he was ripping us off. So we made a deal with India. It's a fair deal now, and we are not paying tariffs to them, and they are paying tariffs. We did a little flip. The India deal is on…all the deals are on, we're just going to do it (differently).”

How much tariff is India expected to pay?

Notably, in 2025, Trump imposed 50% tariffs on India (25% reciprocal and 25% “punishment” for buying Russian oil), which was reduced to 18% (reciprocal, with Russia-related duties removed), following a joint interim trade framework announcement earlier this month.

According to the US Supreme Court ruling, India will be subject to 0% tariffs as reciprocal tariffs are imposed under the IEEPA. However, with Trump and the White House both insisting that deals signed must be honoured, and no clarity from officials, it is unclear whether the new rate or rates agreed to under extant trade deals will be applicable.

CNBC citing White House officials, reported that Trump's 10% global tariffs would be applicable for all countries which have trade agreements with the US.

Responding to ANI, a White House official also confirmed that India will pay 10% tariffs in line with Trump's newest executive order, till such time that “another authority is invoked”.

On India continuing to pay tariffs, the official told the agency, “Yes, 10% until another authority is invoked.” They also advised all the trade partners to abide by the trade deals, the ANI report added. This means the new order replaces the previous 18% tariff to 10% rate and does not club with it (to make 28% rate).

Here's what we know about country tariff rates

• CNBC reported that the White House confirmed all countries with existing trade agreements with the US would drop down to the 10% tariff rate, in line with the newest executive order. This includes Vietnam (earlier 20%), India (18%), the European Union, Japan, Liechtenstein, Switzerland, and South Korea (15% each), and the UK (remains at 10%).
• Notably, aluminium and steel exports are also subject to separate sector-specific tariffs under a separate statutory authority.
• The White House fact sheet added that Trump has also “reaffirmed and continued the suspension of duty-free de minimis treatment for low-value shipments, including goods shipped through the international postal system, which will also be subject to the temporary import duty imposed under section 122”.

(With inputs from agencies)