New Delhi: Uncertainty continues over the exact tariff rate that the United States will apply to Indian goods, leaving exporters in a state of confusion ahead of the scheduled implementation date.
A 10 per cent tariff on Indian imports into the United States is set to take effect from February 24 for a period of 150 days. However, shortly after announcing the 10 per cent rate, US President Donald Trump indicated that the levy would be raised to 15 per cent.
Despite that statement, no formal notification confirming the revised 15 per cent rate has been issued so far. The lack of official clarification has created uncertainty among Indian exporters regarding the applicable duty.
Trade relations between the two countries have undergone several tariff adjustments in recent months. In August 2025, Washington imposed a 25 per cent reciprocal tariff on India. An additional 25 per cent penalty was subsequently levied in response to India’s purchase of Russian crude oil, bringing the total duty burden to 50 per cent at that time.
The additional 25 per cent penalty has since been withdrawn, leaving a 25 per cent tariff currently in place. The proposed 10 per cent temporary levy, or potentially 15 per cent if revised, would apply for 150 days beginning February 24.
Under a proposed interim trade framework currently under discussion, tariffs could be reduced to 18 per cent, subject to the signing of a legal agreement between the two nations. However, trade negotiations that were scheduled to take place in Washington from February 23 to 26 have been postponed.
Earlier, Commerce Minister Piyush Goyal had indicated that a trade deal between India and the United States could come into effect in April. With the talks now deferred, the timeline for finalising an interim agreement remains uncertain.
Exporters have expressed concern over the ambiguity surrounding the tariff rate, as shipment pricing and contractual obligations depend heavily on clarity regarding applicable duties. Industry stakeholders are awaiting an official announcement from US authorities to determine whether the 10 per cent or 15 per cent rate will apply.
The evolving tariff scenario follows a series of legal and policy developments in the United States related to trade measures. In the absence of a definitive notification, businesses are monitoring updates closely to assess the potential financial impact.
For now, the uncertainty over the applicable tariff rate continues to weigh on exporters as the February 24 implementation date approaches. Further clarity is expected once the United States issues a formal communication specifying the final duty structure.
