【India】US Tariffs: How Will India Benefit From The US Tariff Changes? Learn From Experts

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Editor’s Note

The U.S. Supreme Court’s recent ruling has significantly reshaped the tariff landscape, overturning a major part of the previous administration’s agenda. While the resulting 10% temporary surcharge may ease some trade pressures, particularly for sectors like gems and jewelry, the broader picture remains one of policy flux and uncertainty for global industries.

US Supreme Court Overturns Major Portion of Trump’s Tariff Agenda

Following the US Supreme Court’s decision to overturn a major portion of President Trump’s broad tariff agenda, the US has implemented a 10% temporary import surcharge. This could reduce the reciprocal tariff on India to 10%. While this provides relief to sectors like gems and jewelry, persistent changes in tariff policies continue to create uncertainty for industries.

Reciprocal Tariff on India May Drop to 10%

The 10% surcharge will be applied on top of existing MFN duties. This is a significant relief for India as the reciprocal tariff (RT) on Indian goods may drop from 25% to 10%. While the announcement has been viewed positively by the gems & jewelry, apparel, and MSME sectors, the daily volatility and new announcements regarding tariff rates are preventing industries from planning and scheduling their supply and demand effectively.

Gems & Jewelry Industry Must Act Prudently

Colin Shah, MD of Kama Jewelry, says the decision to remove tariffs along with the 10% US surcharge provides major relief for Indian gems and jewelry exporters. This decision will help bridge the gap in demand and supply that had emerged due to the previously imposed 50% duty, as exporters were struggling to sustain business due to the heavy tariff rates.

“The court’s decision reminds us that any business measure must align with constitutional processes, and predictability is crucial in global trade. While this new development is a change, it’s also true that exporters are still facing difficulties. The cost pressure will remain on finished jewelry categories that are not exempt. In my view, exporters must work more prudently in their planning, scheduling, and classification to avoid any additional trouble.”
MSME Industries Have Relief, But Must Wait for Agreement Implementation

According to Deepen Agrawal, President of the Chamber of Association of Maharashtra Industry and Trade, this is a major relief for India. Export-dependent industries will benefit significantly as they have faced losses since last year. Generally, the leather, mobile component, and food processing sectors will gain.

“However, we must also note that in the US, debates are ongoing in the Supreme Court and political corridors regarding increasing or decreasing tariff rates. They are also quite angry about the decision against Trump’s tariffs. Therefore, we must wait for the US-India trade bilateral agreement, which has been finalized between the two countries, to be implemented, which is expected this April. After that, clarity will emerge in all sectors.”
Positive for Apparel Sector, But Awaiting Clarity

According to Dr. A. Shaktivel, Chairman of the Apparel Export Promotion Council, recent developments in US tariff policy are particularly positive for the apparel sector. Following the Supreme Court’s order, we will benefit as we need to negotiate and secure an opportunity for 10% or even less. He says the reduction in tariffs is good for India because we have raw materials available and can supply in large quantities with good quality.

Rahul Mehta, Chief Patron of the Clothing Manufacturers Association of India (CMAI), says,

“For now, we must wait for the India-US trade bilateral agreement to be implemented. Because an atmosphere of uncertainty is being observed among industries and exporters. Since Trump is making new decisions every day, it’s quite difficult to predict what will happen tomorrow. Exporters and businesses need to plan and schedule months in advance. Daily changing decisions disrupt supply and affect business sentiment. Therefore, we are waiting for the India-US trade bilateral agreement to be implemented, where everything will become clear.”
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⏰ Published on: February 21, 2026