US Slashes India Tariff to 10% Temporarily After Court Ruling

"The 10 per cent would replace the IEEPA tariffs (50 U.S.C. 1701 et seq.) that were just struck down," a White House official told IANS on Friday afternoon.

Early this month, Trump reduced the reciprocal tariff on India from 25 to 18 per cent after the two countries reached a framework for an interim agreement on reciprocal trade.

Asked whether the new "global tariff" meant India's tariff rate would now stand at 10 per cent instead of the existing 18 per cent, the White House official said: "Temporarily, yes. Until another tariff authority can be invoked to implement a more appropriate tariff rate."

The White House official spoke on condition of anonymity.

The clarification by the White House indicates that the newly announced 10 per cent global tariff under Section 122 is not in addition to previously imposed IEEPA tariffs on India, but replaces them for now.

Earlier on Friday afternoon, President Trump had told reporters that "nothing changes" with respect to the India trade framework and that "they'll be paying tariffs and we will not be paying tariffs".

He described the Us-India trade deal as "a fair deal now", adding, "we did a little flip."

However, the US Supreme Court judgment struck down President Trump's use of IEEPA to impose certain tariffs, prompting questions about how India's previously reported 18 per cent tariff rate would be affected.

The White House response confirms that, at least temporarily, the applicable rate for India would fall to 10 per cent under the new Section 122 authority.

The Trump administration has indicated that additional tariff authorities may be invoked in the coming weeks.

During the press conference, Trump signalled that other statutes -- including Sections 232 and 301 -- remain available and could support further action.

"Potentially higher," Trump said when asked whether tariff rates could increase.

"It depends whatever we want them to be."

The US President added that alternative authorities were "even stronger than our original choice" and suggested the new structure could ultimately allow higher trade duties than before.

Trade relations between India and the US have been marked by periodic tensions over tariffs and market access, even as strategic ties have deepened in defence, technology, and Indo-Pacific cooperation.

Successive administrations have used a mix of negotiations and tariff measures to address trade imbalances and sector-specific concerns.

The current adjustment reflects both legal constraints imposed by the US court and the administration's stated intent to continue pursuing, through alternative statutory mechanisms, what Trump has described as "fair" trade terms.

- IANS