US Supreme Court Ends IEEPA Tariffs - What Changes for Indian Trade?

Quick Overview

A recent U.S. court decision has changed the country’s tariff system and introduced a temporary universal import tariff. This article explains why the earlier 18% reciprocal duty was suspended, details about the new 10% tariff (which may increase to 15%), its 150-day validity, the continuation of Section 232 tariffs, and how these changes may affect refunds for Indian exporters.

President Donald J. Trump has announced a temporary import duty to address the US growing trade imbalance and protect its national economic interests. While the policy focuses on boosting U.S. domestic production. 

For India–U.S. trade, the tariff on Indian exports is now set at 10%, with a possible increase to 15%, instead of the earlier 18%.  This is a favorable shift, offering a clearer and comparatively lower rate than before.

The Rise and Fall of 18% Tariff

The reciprocal tariff on Indian exports went through major changes due to a trade deal and a court ruling.

• President Donald Trump first imposed a heavy 50% reciprocal tariff on Indian goods entering the US. It came as a big shock to exporters.
• After trade talks, the India–USA Trade Deal (February 2, 2026) was announced. Under this deal, the tariff was reduced to 18%, giving exporters some relief and fresh hope.
• Later, the Supreme Court of the United States ruled that these emergency tariffs were not legally valid.
• Because of this ruling, the 18% reciprocal tariff was suspended.
• The extra country-specific duties, including higher charges on Indian exports, were removed.

A Major Turn in U.S. Trade

The United States has announced a new tariff that will apply to all imported goods, no matter which country they come from. This decision signals a major shift in U.S. trade policy.

• The tariff was first announced at 10% “global tariff” on February 20.
• A day later, on February 21, Donald Trump mentioned on social media that it could increase to 15%.
• However, there is still no official government notice confirming the 15% rate.
• The new universal tariff is set to take effect from February 24, 2026.
• Goods that were already shipped before February 24, 2026, and entered into the U.S. before February 28, 2026, are exempt from the additional 10% duty. (Source: Official Annex to Presidential Proclamation under Section 122 - White House, February 2026)

Is the new U.S. Tariff Time-Bound?

The new tariff is time-bound and it is not permanent. It has been introduced as a temporary trade measure by the U.S. government.

• Validity: 150 days
• Expiry Date: July 24, 2026

During this period, the U.S. government will review trade conditions and decide the next step. For businesses, this brings mixed feelings. The policy is not forever, but 150 days is still a long time in global trade. Companies must stay alert, plan carefully, and be ready for any change after July 24, 2026.

What Happens to Section 232 Duties?

While new tariff changes are being introduced, some older duties are still in place.

• Tariffs under Section 232 of the Trade Expansion Act of 1962 remain unchanged.
• Certain steel and aluminum products will continue to face the existing tariff rates.
• The new 15% universal tariff does not apply to these goods.
• The final decision depends on the product’s classification and assessment by U.S. customs authorities.

Can Indian Exporters Get Refunds?

Indian exporters who paid higher duties under the earlier emergency tariffs may be eligible for a refund, depending on U.S. customs rules and product classification.

• Businesses should review past shipments, especially under DDP (Delivered Duty Paid) and LDP (Landed Duty Paid) terms, for payments made between early 2025 and February 2026.
• Exporters should consult U.S. customs brokers to verify refund eligibility and understand the process.
• The refund process is still under discussion. Detailed guidance from U.S. customs authorities is expected soon.
• The revised U.S. tariff of 10% (with a possible increase to 15%) is more stable than earlier higher and changing rates.
• As the tariff is temporary and valid for 150 days (until July 24, 2026), exporters should review contracts and include flexible pricing clauses in case of policy changes.

As the tariff environment changes and remains temporary, exporters must not only review pricing and contracts but also ensure smooth operational execution.

Reliable freight forwarders like Intoglo can support exporters with updated sailing schedules, documentation coordination, and better cost planning for India–US FCL shipments during this transition period.
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Conclusion

The temporary  tariff sets a clear but time-bound framework for trade until July 24, 2026. With policy shifts occurring within a short span, businesses should remain attentive to further updates and assess their commercial and compliance strategies accordingly. Careful monitoring over the coming months will be essential as the next phase of U.S. trade policy takes shape.

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