India set for 10% tariff rate
Washington: White House officials have clarified that countries with trade agreements with the United States, including India, will see tariff rates lowered to 10% under the latest proclamation signed by US President Donald Trump.
According to officials, the revised ad valorem tariff rate of 10% will apply for a period of 150 days. However, in terms of actual imposition, the 18% rate, which had been agreed upon had not been notified yet, so tariffs will adjust from 25% to 10% on affected goods, according to government sources.
The temporary duty is set to take effect from February 24 at 12:01 am Eastern Standard Time, as outlined in the proclamation issued earlier this week. Countries that negotiated agreements earlier see immediate relief: the European Union, previously at 15%, drops to 10%; Japan moves from 15% to 10%; India falls from 18% to 10%; South Korea from 15% to 10%; and Vietnam, which had a 20% tariff, now also sees a reduction to 10%.
Officials called this “a short-term win” for companies doing business with these regions, noting the relief is temporary until new statutory authorities undergo the formal process. These tariffs, previously justified under IEEPA, had been blocked by the Supreme Court. To comply, the administration applied alternative statutory powers to bring the rates down to 10%.
As per reports, the White House noted that the 10% ad valorem rate is in effect for 150 days. Beyond this window, authorities retain the ability to adjust tariffs back to their original levels, pending the completion of studies, comment periods, and formal findings—a process that can take 90 to 180 days or more.
For now, trade partners under existing agreements enjoy a significant reduction, while the administration works through the longer-term statutory process to determine how tariffs may be adjusted going forward.
