• Source:JND
HighLights
  1. US 10% tariff on Indian goods expires July 24.
  2. Uncertainty prevails as Trump administration's next trade steps unknown.
  3. India faces potential new tariffs despite ongoing trade agreement talks.

A temporary 10 per cent US tariff on most Indian goods is set to expire on Friday, July 24. As no update has been issued so far by the Trump administration, it has created uncertainty for exporters and businesses. The tariff, which was introduced earlier this year as a short-term measure after the US Supreme Court challenged the legal basis of President Donald Trump’s earlier tariff policy, applies to many US trading partners and not just India.

India Faces Uncertainty Over Future Tariffs

Every country is waiting to see whether Washington replaces it with new duties. For India, the situation is complicated as the US has two ongoing investigations that may lead to new tariffs. At the same time, India and the US are close to a trade agreement, but it has not been officially signed yet. Also, India has one more concern to look after as a bill is being discussed in the US Senate that could allow tariffs of up to 100 per cent on Indian goods over India’s purchase of Russian oil.

ALSO READ: Trump Announces 100% Tariff On Imported Generic Drugs Starting 2028; Why India Is Directly In The Crosshairs

Current Tariffs On Indian Goods

Indian products entering the US currently face an additional 10 per cent tariff under Section 122 of the Trade Act of 1974. This duty is charged on top of regular import duties that vary depending on the product. Some sectors already face higher tariffs. For example, steel, aluminium and related metal products have a 50 per cent duty, while automobiles and auto parts face a 25 per cent duty. Notably, these tariffs will not be affected by Friday’s expiry.

However, several important Indian exports are currently protected from the additional tariff. These include smartphones, laptops, semiconductor products, pharmaceuticals, energy products, and critical minerals. In 2024-25, smartphones were among India’s biggest exports to the US, worth around USD 10.9 billion.

India-US Trade Deal Talks Continue

India and the US had reached a framework agreement in February that aimed to reduce tariffs on Indian goods from 50 per cent to 18 per cent. The proposal also included removing a 25 per cent penalty linked to India’s Russian oil purchases. In return, India indicated plans to increase purchases of American goods and provide greater access to US products. However, the agreement is still not final.

US May Announce New Tariffs

While countries wait for the announcement, multiple reports suggest that the Trump administration is preparing possible new tariffs on around 60 trading partners over concerns related to forced labour. US Trade Representative Jamieson Greer indicated that new duties could be announced soon. Speaking to CNBC, he said, "We expect to see some action soon," but did not provide a timeline. The new tariffs are expected to range between 10 per cent and 12.5 per cent.

ALSO READ: Pay Putin, Pay America: 60 US Senators Back New Bill Proposing 100% Tariffs On India, China Over Russian Oil Purchases

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