Indian exports to the usa will entice a extra 10 per cent tariff, down from the earlier 25 per cent, for 150 days starting Tuesday, following a Supreme Court docket verdict that struck down the Trump administration’s sweeping tariffs.
US President Donald Trump, on the other hand, has introduced a deliberate hike to fifteen per cent, even though no first rate sigh has been issued, creating uncertainty for exporters. Following the Supreme Court docket ruling final week, Trump on February 21 imposed a 10 per cent tariff on all countries, at the side of India, effective February 24 for 150 days. Within hours, he signaled a ability upward push to fifteen per cent.
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Exporter concerns over uncertainty
“As per the recent sigh, Indian goods will entice 10 per cent tariffs from February 24. But we are conserving our fingers crossed, as a brand new sigh for 15 per cent tariffs has now now not been issued by the US to this level. But uncertainty is there,” Ajay Sahai, Director Basic of the Federation of Indian Export Organisations (FIEO), told PTI.
Sharad Kumar Saraf, Mumbai-primarily based exporter and founder chairman of Technocraft Industries India, talking to PTI, mentioned: “We absorb got to lift down the curtains on this tariff drama now.” He highlighted that the US is a key export market and tariff uncertainty impacts industry sentiment. “Clarity and certainty over these tariffs may per chance well per chance well aid us in pushing exports to the US,” he added.
How the new tariffs work
The ten per cent levy can be imposed as successfully as to existing Most Favoured Nation (MFN) tasks in the US. As an instance, a product coping with a 5 per cent MFN responsibility will now absorb an efficient responsibility of 15 per cent, compared with the previous 30 per cent. If the 15 per cent tariff is finally implemented, the full responsibility would upward push to twenty per cent.
Impact on sneakers and leather-primarily based sectors
For the sneakers and leather-primarily based industries, tariff steadiness is essential. Aqeel Panaruna, chairman of Florence Shoe Company, talking to PTI, mentioned the Supreme Court docket ruling has improved visibility for world sourcing, with effective tasks expected to fall between 10 and 15 per cent. “For the sneakers and leather-primarily based commerce, certainly one of essentially the most labour-intensive and provider-pushed world manufacturing sectors, tariff steadiness is essential. Lengthy product-pattern cycles, tight margins, and complex dealer coordination require predictable landed charges and legit execution,” he outlined.
Panaruna emphasised that India remains aggressive due to its expert team, expanding manufacturing skill, and skill to fulfill US quality and supply requirements. “Footwear manufacturing isn’t any longer pushed by price alone. Carrier reliability, team continuity, and lengthy-duration of time dealer relationships are an increasing selection of central to sourcing selections. India’s skill to model consistent labour availability and scalable manufacturing helps carve supply-chain chance for US brands,” he added.
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Benefits for diversified export sectors
Yogesh Gupta, MD of Kolkata-primarily based Megaa Moda, a predominant processor and exporter of seafood products, told PTI that the reduction in reciprocal tariffs to 10 per cent may per chance well per chance well aid amplify shipments to the US. “The removal of the 15 per cent uncertainty will give a clearer represent to exporters,” he added.
The Supreme Court docket’s verdict marked a predominant setback to Trump’s financial agenda, ruling that the tariffs imposed below the Worldwide Emergency Economic Powers Act (IEEPA) of 1977 had been illegal. The US had previously imposed a 25 per cent reciprocal tariff on India in August 2025, later at the side of but another 25 per cent for purchases of Russian impolite, taking total tariffs to 50 per cent.
Earlier this month, India and the US agreed on a framework for an interim commerce deal below which Washington would carve tariffs to 18 per cent. Up to now, the punitive 25 per cent has been removed, whereas the ideal 25 per cent silent exists. To formalise the first piece of the bilateral commerce agreement, the framework wants to be converted proper into a upright text. An Indian team had been scheduled to fulfill US counterparts in Washington from February 23-26, 2026, but the consult with has been postponed.
Between 2021 and 2025, the US turned into as soon as India’s largest trading accomplice in goods, accounting for round 18 per cent of India’s total exports, 6.22 per cent of imports, and 10.73 per cent of bilateral commerce. In 2024-25, bilateral commerce totaled USD 186 billion, with USD 86.5 billion in exports and USD Forty five.3 billion in imports.
With inputs from PTI
