0%, 18%, 10% or 15%?:How much tax India faces now after US court quashes Trump’s ‘Worldwide Tariffs?’

0%, 18%, 10% or 15%? How much tariffs does India face now after the United States Court of International Trade ruled against President Donald Trump’s 10% global tariffs on most imports? This question has baffled everybody. Has this given liberty to India to pay 0% tariffs on exports to America. Lets see where we are placed. After the US federal court’s striking down of the universal tariffs on 7 May, the final import duty to be levied on Indian exports to America probably stands at 18%, as this was decided when India and US had released documents of the interim trade deal, back in February 2026. In February 2026, both countries had released documents of an interim trade deal. Then, the US Supreme Court had termed the reciprocal tariffs levied by President Trump via invoking the International Emergency Economic Powers Act (IEEPA) as illegal. At that time, the total tariffs on India had stood at 50% (25% reciprocal + 25% for purchase of Russian oil.) So, the US Supreme Court’s quashing of the reciprocal tariffs had literally reduced duties on India to 25%. But after a few days of the US Supreme Court’s quashing of the reciprocal tariffs, the Trump admin again levied 10% tariffs in Feb last week for 150 days invoking Section 122 of the Trade Act, 1974. Later they, increased it to 15% under the same section. But after the US Court Of International Trade’s latest verdict of 7 May, that 15% duties also stand negated. But the US president had earlier said in a media interaction that regardless of anything the India-US trade deal stood as it was. So, taking in view, the top Republican’s statement, it seems India would still have to pay 18% duties on exports sent to America, unless and until, this rate is changed under the trade deal. US Court of International Trade’s quashing of 10% tariffs doesn’t apply to India: GTRI According to the global think tank, the GTRI, the US Court of International Trade’s quashing of 10% tariffs on 7 May currently applies only to the parties that filed the case – the state of Washington, spice importer Burlap Barrel, and toy maker Basic Fun and not other countries, including India. “The tariffs will continue for other importers while the US government appeals the ruling. The court chose not to block the tariffs nationwide at this stage. The court limited relief to the litigants before it rather than issuing a nationwide injunction, a practice sometimes followed by US courts in politically sensitive disputes involving executive authority. -GTRI, founder, Ajay Srivastava India’s tariff situation: a rollercoaster ride India has really gone through a rollercoaster ride since 2 April 2025. India has faced a series of changing tariffs from the Trump administration. Initial Tariffs: Before 2 April 2025, only MFN duties were imposed on India. The US initially imposed a 10% baseline tariff on some Indian goods. This was later increased to 26% and then corrected to 25%. Additional Penalties: The US added another 25% tariff on India for buying crude oil from Russia, bringing the total up to a hefty 50%. Easing Tensions: After negotiations, the Trump administration agreed to lower the total tariff to 18% and remove the extra penalty for the Russian oil deal. Trump imposes duties invoking a different law: Then, the US government announced a temporary, across-the-board import surcharge of 10% (later increased to 15%) on many goods. US court quashes those duties: US federal court ruled against Section 122 ‘Worldwide Tariffs’ on most imports. What are Tariffs? Tariffs are essentially taxes on imported goods. When a company in India exports goods to the US, the American government charges a tariff on those goods. The company importing the goods usually pays this tariff. To cover this cost, companies often increase the price of their products, which means consumers end up paying more. What about the India-US Trade Deal? India and the US have been working on a trade deal for some time. The goal is to reduce trade barriers and increase trade between the two countries. Trump’s stand: No change to the deal Despite the changes in tariffs, President Trump has stated that the trade deal with India remains the same. Some tariffs remain despite US court’s verdict It’s important to remember that some tariffs on specific sectors, like steel, aluminum, and certain auto parts, will remain in place. These tariffs are set at 50% for steel, aluminum and copper and 25% for select auto components. Why America imposes tariffs? The US government has said that it imposes tariffs because it believes that some countries, including India, have unfairly high tariffs on American goods. The US also has a trade deficit with India, meaning it imports more goods from India than it exports to India. The US is India’s largest trading partner. In 2024-25, the total trade between the two countries was worth $186 billion (₹16.74 lakh crore.) India exports more goods to the US than it imports, resulting in a trade surplus for India.