What happened to the US tariffs on India
Updated 23 Oct 2026. The US is India's largest export destination (as of 2026), and US tariffs opened the GK section of CLAT 2026. The story teaches what tariffs are, how trade disputes are handled, and how courts can limit executive power. It sits beside India's own trade pacts: the EU deal concluded in January, the UK agreement in force from July and the New Zealand agreement in force from 20 October 2026.
India's trade agreements
| Partner | Pact | Status (as of Oct 2026) |
|---|---|---|
| UAE | CEPA | In force May 2022 |
| Australia | ECTA | In force December 2022 |
| EFTA | TEPA | In force October 2025 |
| Oman | CEPA | Signed 18 Dec 2025; in force 1 Jun 2026 |
| European Union | FTA | Talks concluded 27 Jan 2026 |
| New Zealand | FTA | Signed 27 Apr; in force 20 Oct 2026 |
| United Kingdom | CETA | In force 15 Jul 2026 |
What an exam could ask
- The sequence of US tariffs on India could be asked as a chronology: 50 percent from August 2025, 18 percent from February 2026, the IEEPA ruling of 20 February, a temporary Section 122 global tariff until 24 July, then a 10 percent Section 301 tariff.
- The US Supreme Court's IEEPA ruling could be used in a legal reasoning passage on limits of executive power.
- India's trade agreements could be asked as a match-the-partner item: which pact came into force on which date.
- Basic trade vocabulary could be tested: tariff versus non-tariff barrier, FTA versus CEPA, the WTO's seat.
- The Graham Act's 100 percent figure could be asked, with the distinction that the Act requires the duties (up to 100 percent, up to 500 percent on goods from Russia itself) but allows waivers, and the 16 October order waived them all.
Angles to revise, not predictions.
What happened
In August 2025 the US put a 50 percent tariff on Indian goods: 25 percent reciprocal plus 25 percent over Russian oil. On 2 February 2026 the US President announced a deal cutting the reciprocal tariff to 18 percent; the oil penalty ended on 7 February. On 20 February the US Supreme Court ruled in Learning Resources v. Trump that the emergency law IEEPA does not allow a president to impose tariffs, so the administration switched laws: a temporary Section 122 global tariff, then from 24 July a 10 percent Section 301 tariff on India. In September a new Act, the Graham Sanctioning Russia and Iran Act, required the President to raise duties by up to 100 percent on goods from the largest buyers of Russian oil and gas and the top sanctions evaders, but let him waive them; an order of 16 October set the rates and waived all the duties in the same text, so none is in force.
Words to know
- Tariff
- A tax on imported goods. A non-tariff barrier is any other restriction, such as a quota or standard.
- Reciprocal tariff
- The US term for country-specific duties set in 2025 with the stated aim of matching other countries' barriers.
- IEEPA
- The International Emergency Economic Powers Act of 1977, a US law for economic sanctions in emergencies. The US Supreme Court held in February 2026 that it does not cover tariffs.
- Section 122 and Section 301
- Provisions of the US Trade Act of 1974. Section 122 allows temporary tariffs for up to 150 days; Section 301 lets the US Trade Representative act against unfair foreign trade practices and underpinned US tariffs on China from 2018.
- Free trade agreement (FTA)
- A treaty in which countries cut tariffs on each other's goods. India's recent pacts: UAE CEPA (May 2022), Australia ECTA (December 2022), EFTA TEPA (in force October 2025), Oman CEPA (June 2026), UK CETA (July 2026), New Zealand FTA (October 2026); the EU deal was concluded in January 2026 and still needed ratification (as of the January announcement).
- CEPA and CETA
- Comprehensive Economic Partnership Agreement (used for the UAE and Oman pacts) and Comprehensive Economic and Trade Agreement (the UK pact): names for broad trade deals that cover services and investment as well as goods.
- WTO
- World Trade Organization, set up in 1995, headquartered in Geneva; it administers global trade rules and settles disputes.
- Transshipment
- Routing goods through a third country to disguise their origin; a US report in August 2026 flagged India among over 40 countries for risk of this with Chinese goods.
Full timeline
India and Oman sign a Comprehensive Economic Partnership Agreement in Muscat (in force 1 June 2026)
India and the EU conclude free trade talks begun in 2007, at the 16th summit in New Delhi
US announces a trade deal: reciprocal tariff on India cut from 25 to 18 percent; Russian-oil penalty to go
US Supreme Court (6 to 3) holds IEEPA does not authorise tariffs; a Section 122 global tariff follows
India and New Zealand sign a free trade agreement in New Delhi
India and UK announce their trade agreement and social security convention take effect on 15 July
India-UK Comprehensive Economic and Trade Agreement comes into force
US imposes a 10 percent Section 301 tariff on Indian goods as the Section 122 surcharge expires
Commerce Ministry says about 45 percent of India's exports to the US are outside the new tariff
White House transshipment report places India in Tier 1; no new tariff attached
US House passes the Graham Sanctioning Russia and Iran Act, 262 to 159
The Act is signed into law: it requires the President to raise duties, at a rate of up to 100 percent, on goods from the largest buyers of Russian oil and gas and the top sanctions evaders, subject to exceptions and presidential waivers
India-New Zealand FTA enters into force; all Indian exports to New Zealand duty free
Sources
- https://www.onmanorama.com/upsc/current-affairs/2026/06/02/india-oman-cepa-comes-into-force.html
- https://indiashippingnews.com/india-oman-cepa-enters-into-force/
- https://www.middleeastbriefing.com/news/?p=6453
- https://morungexpress.com/eu-india-have-concluded-mother-of-all-deals-created-free-trade-zone-of-two-billion-people-ursula-von-der-leyen
- https://www.businesstoday.in/amp/india/story/99-of-indian-exports-are-covered-piyush-goyal-on-india-eu-fta-513116-2026-01-27
- https://asianews.network/?p=253664
- https://www.outlookmoney.com/news/us-india-trade-deal-tariffs-on-indian-goods-cut-to-18-trump-says-india-agrees-to-stop-buying-russian-oil
- https://www.onmanorama.com/news/india/2026/02/02/trump-india-trade-deal.amp.html
- https://www.seafoodsource.com/news/supply-trade/trump-announces-trade-deal-with-india-that-drops-reciprocal-tariff-to-18-percent
- https://www.arabnews.com/node/2631553/{{
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- https://www.business-standard.com/economy/news/us-slaps-10-tariff-on-india-under-sec-301-probe-linked-to-forced-labour-126072400509_1.html
- https://www.deccanherald.com/business/india-placed-in-lower-tariff-tier-at-10-under-us-section-301-measures-on-forced-labour-govt-4087091
- https://www.theweek.in/news/biz-tech/2026/07/24/us-tariffs-section-301-india.html
- https://www.tribuneindia.com/news/forced-labour/us-cuts-additional-section-301-tariff-on-india-to-10-45-of-exports-remain-exempt-says-commerce-ministry
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- https://www.outlookbusiness.com/economy-and-policy/the-great-transshipment-scam-us-puts-india-in-china-linked-tier-1-risk-category-exports-concerns-explained
- https://www.business-standard.com/world-news/us-india-tier-1-china-tariff-evasion-transshipment-scam-126081400794_1.html
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- https://www.outlookindia.com/international/trump-signs-russia-sanctions-bill-india-and-china-face-100-tariff-threat
- https://www.pravda.com.ua/eng/news/2026/09/19/8054170/
- https://www.bloomberg.com/news/articles/2026-02-06/trump-removes-india-s-25-russia-related-tariff-after-deal
- https://www.thomsonreuters.com/en-us/help/onesource-global-trade/regulatory-insights/2026/february-10th/order-eliminates-tariffs-indian-stop-russian-oil
- https://theprint.in/economy/india-new-zealand-trade-pact-kicks-in/3076900/
- https://www.rnz.co.nz/news/politics/2030544/nz-india-free-trade-agreement-officially-begins
- https://www.uniindia.com/business-economy/india-new-zealand-fta-to-come-into-force-on-oct-20-piyush-goyal/187034
You may have heard it as: Trump tariff India, America ne India par tariff kyon lagaya, US India trade deal February 2026, 18 percent tariff India, is the 50 percent tariff on India gone, Section 301 tariff India, IEEPA Supreme Court tariffs, India UK trade deal CETA, India New Zealand FTA, India EU free trade agreement, tariff kya hota hai, Russian oil India tariff, Graham sanctions act India 100 percent.
Test yourself
1.In February 2026 the US Supreme Court held that IEEPA does not authorise a president to impose what?
Correct. In Learning Resources v. Trump the Court held 6 to 3 that IEEPA does not cover tariffs. The administration then used other laws.
Not quite. In Learning Resources v. Trump the Court held 6 to 3 that IEEPA does not cover tariffs. The administration then used other laws. It goes into your error book.
2.Section 122 of the US Trade Act of 1974 allows temporary tariffs for up to how many days?
Correct. Section 122 allows temporary tariffs for up to 150 days. Section 301 followed on 24 July 2026.
Not quite. Section 122 allows temporary tariffs for up to 150 days. Section 301 followed on 24 July 2026. It goes into your error book.
3.The World Trade Organization, headquartered in Geneva, was set up in which year?
Correct. The WTO was set up in 1995. It administers global trade rules and settles disputes.
Not quite. The WTO was set up in 1995. It administers global trade rules and settles disputes. It goes into your error book.
4.Which trade pact came into force on 15 July 2026?
Correct. The India-UK Comprehensive Economic and Trade Agreement came into force on 15 July 2026.
Not quite. The India-UK Comprehensive Economic and Trade Agreement came into force on 15 July 2026. It goes into your error book.