US Lowers Reciprocal Tariffs on Indian Goods: A New Chapter in Trade Relations

Following a US Supreme Court verdict, President Donald Trump announced a reduction of the reciprocal tariff on Indian goods from 25% to 10%. This change is part of a new global levy affecting imports into America, and it signals a shift in US-India trade relations, necessitating fresh evaluations.

In a significant development for international trade, US President Donald Trump has announced a reduction in the reciprocal tariff on Indian goods from 25% to 10%. This decision follows a US Supreme Court ruling that challenged Trump's sweeping tariffs on several nations.

Starting February 24, 2026, Indian products entering the US will face only a 10% levy, down from the 25% imposed previously. This marks a pivotal shift in trade dynamics between the two countries and comes in the wake of dialogue to finalize a bilateral trade agreement.

Experts, such as GTRI founder Ajay Srivastava, suggest this reduction may require India to re-evaluate its trade pact with the US, considering the broader implications of a uniform tariff policy now applied across various trading partners.

(With inputs from agencies.)