US President Donald Trump, however, has announced a planned hike to 15 per cent, though no official order has been issued, creating uncertainty for exporters. Following the Supreme Court ruling last week, Trump on February 21 imposed a 10 per cent tariff on all countries, including India, effective February 24 for 150 days. Within hours, he signaled a potential rise to 15 per cent.
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Exporter concerns over uncertainty
“As per the current order, Indian goods will attract 10 per cent tariffs from February 24. But we are keeping our fingers crossed, as a new order for 15 per cent tariffs has not been issued by the US so far. But uncertainty is there,” Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), told PTI.
Sharad Kumar Saraf, Mumbai-based exporter and founder chairman of Technocraft Industries India, speaking to PTI, said: “We need to bring down the curtains on this tariff drama now.” He highlighted that the US is a key export market and tariff uncertainty affects business sentiment. “Clarity and certainty over these tariffs will help us in pushing exports to the US,” he added.
How the new tariffs work
The 10 per cent levy will be imposed in addition to existing Most Favoured Nation (MFN) duties in the US. For example, a product facing a 5 per cent MFN duty will now have an effective duty of 15 per cent, compared with the previous 30 per cent. If the 15 per cent tariff is eventually implemented, the total duty would rise to 20 per cent.
Impact on footwear and leather sectors
For the footwear and leather industries, tariff stability is critical. Aqeel Panaruna, chairman of Florence Shoe Company, speaking to PTI, said the Supreme Court ruling has improved visibility for global sourcing, with effective duties expected to fall between 10 and 15 per cent. “For the footwear and leather industry, one of the most labour-intensive and service-driven global manufacturing sectors, tariff stability is critical. Long product-development cycles, tight margins, and complex supplier coordination require predictable landed costs and reliable execution,” he explained.Panaruna emphasised that India remains competitive due to its skilled workforce, expanding manufacturing capacity, and ability to meet US quality and delivery standards. “Footwear manufacturing is no longer driven by cost alone. Service reliability, workforce continuity, and long-term supplier relationships are increasingly central to sourcing decisions. India’s ability to provide consistent labour availability and scalable production helps reduce supply-chain risk for US brands,” he added.
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Benefits for other export sectors
Yogesh Gupta, MD of Kolkata-based Megaa Moda, a major processor and exporter of seafood products, told PTI that the reduction in reciprocal tariffs to 10 per cent will help increase shipments to the US. “The removal of the 15 per cent uncertainty will give a clearer picture to exporters,” he added.
The Supreme Court’s verdict marked a major setback to Trump’s economic agenda, ruling that the tariffs imposed under the International Emergency Economic Powers Act (IEEPA) of 1977 were illegal. The US had previously imposed a 25 per cent reciprocal tariff on India in August 2025, later adding another 25 per cent for purchases of Russian crude, taking total tariffs to 50 per cent.
Earlier this month, India and the US agreed on a framework for an interim trade deal under which Washington would reduce tariffs to 18 per cent. So far, the punitive 25 per cent has been removed, while the remaining 25 per cent still exists. To formalise the first phase of the bilateral trade agreement, the framework needs to be converted into a legal text. An Indian team had been scheduled to meet US counterparts in Washington from February 23-26, 2026, but the visit has been postponed.
Between 2021 and 2025, the US was India’s largest trading partner in goods, accounting for around 18 per cent of India’s total exports, 6.22 per cent of imports, and 10.73 per cent of bilateral trade. In 2024-25, bilateral trade totaled USD 186 billion, with USD 86.5 billion in exports and USD 45.3 billion in imports.
With inputs from PTI