The Supreme Court’s decision to strike down large parts of the Trump administration’s tariff framework, followed by the White House’s move to impose a uniform 10% global tariff under a different legal route, has effectively reset the trade landscape for Indian exporters. Under the earlier system, many Indian goods entering the US were hit by steep, country-specific surcharges layered on top of standard Most Favoured Nation customs duties. In some sectors, particularly textiles and engineering goods, these additional levies pushed the overall tariff burden to 25% and, at times, even close to 50%. The result was a sharp loss of price competitiveness, squeezing margins and weakening demand for Indian exports in the US market.
The court ruling removes the legal foundation for this punitive surcharge regime. In its place, the new 10% global tariff introduces a simpler and more predictable structure for most imports, including those from India. For the bulk of Indian exports, the additional duty is now capped at a uniform rate rather than varying widely by product or policy action.
When this 10% surcharge is combined with existing baseline duties, the effective average tariff on Indian exports is estimated to settle in the range of 13–14%. This represents a clear reduction from the earlier reciprocal tariff system and brings duties on more than half of India’s export basket closer to pre-escalation levels, easing a cost burden that had previously undercut volumes and profitability.
That said, the relief is uneven. Tariffs imposed under separate US laws remain untouched by the ruling. This includes national security-based duties on steel and aluminium, as well as certain tariffs on auto components. These levies are substantially higher than the uniform 10% rate and continue to apply to Indian exports in those categories. As a result, a meaningful slice of India’s shipments to the US, running into several billion dollars in value, remains exposed to elevated duty costs despite the broader rollback.
For labour-intensive and export-driven sectors such as textiles, apparel, gems and jewellery, and engineering goods—which together account for a large share of India’s exports to the US—the shift to a flat 10% surcharge offers a tangible competitive boost. With tariffs moving closer to standard MFN levels, Indian suppliers are better placed to price their products more attractively and regain lost demand. Even so, exporters remain cautious. The new tariff arrangement is temporary, the direction of US trade policy beyond this phase remains uncertain, and there is lingering ambiguity over the treatment of duties collected under the now-invalidated regime.
The ruling also feeds directly into ongoing trade discussions between India and the United States. While earlier negotiations focused on securing partial relief through interim arrangements, the legal reset highlights the importance of a more durable, negotiated agreement that can provide certainty and withstand future legal or political shifts. New Delhi is expected to study the implications closely and engage with Washington to seek clearer tariff commitments and more predictable market access for key export sectors.
In sum, the move to a uniform 10% global tariff delivers meaningful cost relief for a large part of India’s export base and restores some of the competitiveness lost under the earlier surcharge-heavy regime. However, high duties in strategic sectors remain a constraint, and continued policy uncertainty means that both exporters and policymakers are still adjusting to a trade environment that, while less punitive, is far from settled.