Prakash Sngh
The trade relationship between India and the United States has taken a sharp turn. Many people are asking about the total tax Indian businesses must pay now. This follows a major decision by the US Supreme Court and a quick response from the White House. If you are looking for news today, the answer is a bit complex. It involves a mix of old rules, new orders, and court battles.
The Big Shift in Trump Tariffs
For a long time, Indian goods were facing very high taxes. Some reached 50% because of various penalties. Recently, a deal was made to bring that down to 18%. However, the US Supreme Court ruled on Friday that the previous way of setting these taxes was not legal. They voted 6-3 against the use of the International Emergency Economic Powers Act (IEEPA) for broad tariffs.
This ruling could have dropped Indian taxes all the way back to 3.5%. But the White House moved very fast. To keep his trade plan alive, the President signed a new order. This order uses Section 122 of the Trade Act of 1974. This is the big trending news for every exporter in India.
Read More Trump Tariffs Live Updates: India Export Duty Cut To 10% For 150 Days
What is the New Total Tax?
In morning news reports, the White House confirmed that India will now pay a 10% “import surcharge.” This is not the only tax. It is added on top of the “Most Favored Nation” (MFN) rates that were already there.
| Type of Duty | Old Rate (Interim Deal) | New Rate (Effective Feb 24) |
| Baseline MFN Duty | Included in 18% | ~3.5% (Average) |
| New Section 122 Surcharge | N/A | 10.0% |
| Total Effective Tariff | 18.0% | 13.5% |
As shown in the grid, the actual cost for many Indian goods will be around 13.5%. This is a significant drop from the 18% deal that was discussed just a few weeks ago. This new news is seen as a temporary win for Indian companies.
What the White House Said About the 10% Duty
A White House official spoke to the media on Friday night. They were asked if the 10% would replace the old 18% rate. The official said, “Yes, 10% until another authority is invoked.” This means the 10% rate is the new standard for now.
However, they also sent a warning in todays news. The White House expects all trade partners to follow their agreements. They want India to keep its promise of buying more US energy and tech. The 10% rate is only guaranteed for 150 days. After that, the US government might try to find a way to bring back the 18% rate or something higher.
Why 150 Days Matters
The law used for this new tax, Section 122, has a strict time limit.
- It can only last for 150 days.
- It cannot go higher than 15%.
- It is meant to fix “balance-of-payment” problems.
Because of this, the trending news suggests that the next five months will be a period of intense talking. India and the US need to sign a final deal before this 150-day window closes. If they don’t, the taxes could change again in late July 2026.
Impact on Key Indian Sectors
In today’s news, Indian exporters are recalculating their costs. Since the total tax is now likely 13.5% instead of 18%, many products will be cheaper to sell in the US.
- Textiles and Apparel: This sector was struggling with the 18% rate. A drop to 13.5% helps them compete with countries like Vietnam.
- Gems and Jewellery: High-value items will see a big difference in the dollar amount of tax paid.
- IT Services: Most digital services are not part of these physical goods tariffs. However, the overall trade mood still affects business confidence.
The morning news also noted that some items are “exempt.” This means they don’t have to pay the extra 10%. This list includes certain food items and critical minerals. Unfortunately, most of India’s main exports like leather and machinery are still taxed.
The Legal Battle is Not Over
Even though the 10% duty is starting, the old taxes are causing a lot of noise in new news. Companies have already paid billions of dollars under the “illegal” 18% and 50% rates. Now, they want their money back.
The US Supreme Court did not say if the government has to give refunds. The White House said they will fight these refund claims in court for years. This is a big deal for large Indian firms that spent a lot of money on Trump tariffs in 2025.
What Should Investors Do?
The stock market today showed a positive reaction to this news. The “GIFT Nifty” rose because a 13.5% tax is better than 18%. But experts warn that the 150-day limit creates “policy uncertainty.”
Exporters are advised to:
- Ship as much as possible before the July deadline.
- Watch the news today for any updates on the refund process.
- Stay in touch with US buyers about price adjustments.
Final Summary of the Situation
The trade war is not over, but the rules have changed. Thanks to the US Supreme Court, the previous high taxes are gone. But thanks to the President’s new order, a 10% surcharge is here. For most Indian goods, the final bill will be around 13.5%.
This is a fast-moving story. Every morning news cycle brings a new detail from Washington or New Delhi. For now, February 24 is the date when the new 10% rule officially begins. Make sure to keep reading today’s news to see how the Indian government responds to this “temporary” tax.
