Indian exporters await clarity as Trump’s new global tariff begins Tuesday
While President Donald Trump said on social media that the global tariff would be increased to 15%, government sources said they are awaiting a formal legal notification on the higher rate.
- Feb 23, 2026,
- Updated Feb 23, 2026 9:12 PM IST
Indian exporters to the United States will come under a new 10% “temporary import surcharge” from February 24, even as notification of the additional 5% levy is awaited.
The move follows a US Supreme Court ruling on February 20 that struck down the earlier emergency tariffs imposed under the International Emergency Economic Powers Act (IEEPA), holding that the President had overstepped his authority.
Within hours, the White House invoked Section 122 of the Trade Act of 1974, which allows temporary tariffs of up to 15% for 150 days to address balance-of-payments concerns. A White House proclamation sets the surcharge at 10%, effective February 24, and notes it applies in addition to other duties (with certain exceptions).
While President Donald Trump said on social media that the global tariff would be increased to 15%, government sources said they are awaiting a formal legal notification on the higher rate. In the absence of such a step, they said, Indian exports are expected to be subject to the 10% rate from Tuesday. At the time of filing this copy, the White House proclamation issued on February 20 mentions a 10% surcharge.
“If the tariff remains at 10-15%, there is certainty that Indian exporters will gain as competition evens out. It is a good development, provided it remains certain,” said Ajay Sahai, Director General & CEO of the Federation of Indian Export Organisations (FIEO).
The development comes at a sensitive time for bilateral trade. Merchandise exports to the United States, India’s largest export market, fell 4.5% month-on-month to $6.58 billion in January, though shipments to the US rose to $72.46 billion in the first ten months of the fiscal year, underscoring the scale of exposure as exporters assess the impact of the additional duty.
Meanwhile, there are no fresh dates for a visit by the Indian negotiating team to Washington. The team, led by Additional Secretary (Commerce) Darpan Jain, was scheduled to visit the US this week. Sources said talks would restart once both sides have assessed the implications of recent developments in consultation with exporters and industry stakeholders.
Indian exporters to the United States will come under a new 10% “temporary import surcharge” from February 24, even as notification of the additional 5% levy is awaited.
The move follows a US Supreme Court ruling on February 20 that struck down the earlier emergency tariffs imposed under the International Emergency Economic Powers Act (IEEPA), holding that the President had overstepped his authority.
Within hours, the White House invoked Section 122 of the Trade Act of 1974, which allows temporary tariffs of up to 15% for 150 days to address balance-of-payments concerns. A White House proclamation sets the surcharge at 10%, effective February 24, and notes it applies in addition to other duties (with certain exceptions).
While President Donald Trump said on social media that the global tariff would be increased to 15%, government sources said they are awaiting a formal legal notification on the higher rate. In the absence of such a step, they said, Indian exports are expected to be subject to the 10% rate from Tuesday. At the time of filing this copy, the White House proclamation issued on February 20 mentions a 10% surcharge.
“If the tariff remains at 10-15%, there is certainty that Indian exporters will gain as competition evens out. It is a good development, provided it remains certain,” said Ajay Sahai, Director General & CEO of the Federation of Indian Export Organisations (FIEO).
The development comes at a sensitive time for bilateral trade. Merchandise exports to the United States, India’s largest export market, fell 4.5% month-on-month to $6.58 billion in January, though shipments to the US rose to $72.46 billion in the first ten months of the fiscal year, underscoring the scale of exposure as exporters assess the impact of the additional duty.
Meanwhile, there are no fresh dates for a visit by the Indian negotiating team to Washington. The team, led by Additional Secretary (Commerce) Darpan Jain, was scheduled to visit the US this week. Sources said talks would restart once both sides have assessed the implications of recent developments in consultation with exporters and industry stakeholders.