US 10 Percent Tariff Under Trade Act of 1974: Implications for India and Global Trade

President Donald Trump signed an executive order to levy a 10% tariff on US imports. The measure covered goods from every country. The order was expected to start on February 25. It followed a US Supreme Court ruling on February 20. The move raised trade tension and could affect India and other large exporters.

The Supreme Court voted 6-3 against Trump’s earlier wide tariffs under the IEEPA. The judges said that law did not allow broad global tariffs. Trump criticised the decision and called it a "disgrace." Soon after, Trump switched to a different statute to keep the policy moving.

Trump relied on Section 122 of the Trade Act of 1974. It allowed temporary tariffs up to 15% for 150 days. The law aimed to address balance-of-payments issues or trade deficits. The 10% tariff applied equally to all countries. Any extension beyond 150 days required approval from Congress.

Item	Detail
Tariff rate	10%
Planned start	February 25
Legal route	Section 122, Trade Act of 1974
Maximum duration without Congress	150 days
Temporary cap allowed by law	Up to 15%

The order added a new 10% charge on all goods entering the United States. It came on top of existing duties. These included Section 232 tariffs tied to national security. They also included Section 301 tariffs linked to unfair trade practices. Higher landed costs could lift US prices and strain exporters’ margins.

India also faced the same 10% tariff, despite recent trade talks. White House officials confirmed equal treatment under the order. India earlier faced tariffs as high as 50% under prior policies. After negotiations, some duties fell to around 18%. The new 10% layer could raise costs again for exporters.

Textiles, steel, engineering goods, and auto components were among exposed sectors. Costlier Indian shipments could weaken demand in the US market. That could hit orders for exporters and affect domestic manufacturers linked to these supply chains. The tariff applied broadly, so firms needed to track both the new levy and older US duty lines.