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International Relations May 08, 2026 5 min read Daily brief · #26 of 33

Additional US tariffs on Indian goods since April 2025: Here’s the full timeline

The United States imposed a series of additional tariffs on Indian goods beginning April 2, 2025, when a national emergency over trade deficits was declared,...


What Happened

  • The United States imposed a series of additional tariffs on Indian goods beginning April 2, 2025, when a national emergency over trade deficits was declared, triggering reciprocal tariffs of 26% on Indian exports under the International Emergency Economic Powers Act (IEEPA).
  • A separate set of tariffs linked to India's purchase of Russian oil was also imposed, varying in percentage and scope.
  • The tariff rates underwent several changes and suspensions in the months that followed, before a bilateral interim agreement in November 2025 reduced India's reciprocal rate from 26% to 18% in exchange for Indian concessions on agricultural market access and digital services.
  • In February 2026, the US Supreme Court ruled 6–3 that IEEPA does not authorise the President to impose tariffs, striking down the IEEPA-based duties effective February 24, 2026; India's effective tariff rate reverted closer to standard MFN levels.
  • US courts subsequently also struck down a replacement 10% global tariff imposed under Section 122 of the Trade Act of 1974, further constraining the executive's unilateral tariff authority.

Static Topic Bridges

International Emergency Economic Powers Act (IEEPA) — US Trade Law

IEEPA is a 1977 US federal law that authorises the President to regulate international commerce after declaring a national emergency arising from an "unusual and extraordinary threat" originating substantially outside the United States. For decades it was used for sanctions and asset freezes, not tariffs. The Trump administration invoked IEEPA to justify broad tariff imposition on the grounds of trade deficits, which was a novel and contested legal interpretation. The US Supreme Court, in its February 2026 ruling in Learning Resources, Inc. v. Trump, held that IEEPA's phrase "regulate…importation" does not authorise the imposition of tariffs, reaffirming that Article I, Section 8 of the US Constitution places the taxing and tariff power squarely with Congress.

  • IEEPA enacted: December 28, 1977 (signed by President Carter)
  • Statute grants power to declare national emergency and regulate international economic transactions — but the Supreme Court clarified this excludes tariff-setting
  • The 6–3 SCOTUS ruling in February 2026 invalidated all IEEPA-based tariffs, including those on Indian goods
  • After IEEPA tariffs fell, the administration attempted a 10% global tariff under Section 122 of the Trade Act of 1974; this was also struck down by the US Court of International Trade on May 7, 2026

Connection to this news: India's tariff exposure to the US shifted multiple times in 12 months — from 26% (IEEPA reciprocal), to 18% (interim agreement), back toward standard MFN rates — as a direct consequence of this evolving legal battle over presidential tariff authority.

WTO's Most Favoured Nation (MFN) Principle

The MFN principle is enshrined in Article I of GATT (General Agreement on Tariffs and Trade) under the WTO framework. It requires that any trade advantage, favour, privilege, or immunity granted to one WTO member must be immediately and unconditionally extended to all other members. This prevents discriminatory bilateral tariff arrangements. Reciprocal or punitive tariffs — such as those the US levied on India — directly violate this non-discrimination principle when applied selectively. WTO allows exceptions for Free Trade Agreements and preferential treatment for developing countries, but unilateral emergency tariffs of the kind seen in 2025–26 have no recognised WTO shelter.

  • MFN is the foundational non-discrimination principle in global trade law
  • Encoded in GATT Article I; India is a WTO member since its founding in 1995
  • Unilateral US tariffs imposed outside any FTA or WTO-recognised waiver potentially breach MFN obligations
  • India's bound tariff rates (maximum permissible) and applied tariff rates are separate — the gap between them gives India negotiating flexibility

Connection to this news: The US imposition of country-specific reciprocal tariffs on India — varying from the standard MFN rate — sits at the centre of WTO jurisprudence on non-discrimination. The court-mandated rollback partially restored MFN conditions for Indian exporters.

India–US Bilateral Trade Architecture

India and the United States are among each other's top trading partners; the US is India's largest export destination. Unlike China or the EU, India does not have a Free Trade Agreement with the US, making MFN rates and any additional duties directly consequential for Indian exporters in sectors like textiles, pharmaceuticals, IT hardware, gems and jewellery. The tariff saga of 2025–26 also revived discussions on a bilateral trade deal, with India making concessions on agricultural market access and digital services as part of the November 2025 interim agreement.

  • US is India's largest trading partner by export destination
  • India's key exports to the US: pharmaceuticals, textiles, engineering goods, gems and jewellery, software
  • No India–US FTA exists; negotiations have been intermittent since the Obama era
  • Russia-linked tariffs were a separate instrument tied to India's oil import pattern, not standard reciprocal logic

Connection to this news: The tariff volatility of 2025–26 highlighted India's structural trade vulnerability to unilateral US executive action — and the strategic importance of eventually formalising an FTA or similar framework with the US.

Key Facts & Data

  • Original IEEPA reciprocal tariff on India: 26% (announced April 2, 2025)
  • Rate after November 2025 interim agreement: 18%
  • IEEPA tariffs terminated: February 24, 2026 (after Supreme Court ruling)
  • Supreme Court ruling: 6–3 in Learning Resources, Inc. v. Trump, February 20, 2026
  • Section 122 10% global tariff struck down by US Court of International Trade: May 7, 2026
  • Section 122 of Trade Act of 1974 allows tariffs up to 15% if a large balance-of-payments deficit is shown — the court found this criterion unmet
  • Approximately 55% of India's exports to the US were freed from additional duties after the SCOTUS ruling, reverting to MFN rates
  • India's bound tariff rates at WTO are among the highest for a major economy (~50% average for agriculture, ~35% for non-agriculture)
On this page
  1. What Happened
  2. Static Topic Bridges
  3. International Emergency Economic Powers Act (IEEPA) — US Trade Law
  4. WTO's Most Favoured Nation (MFN) Principle
  5. India–US Bilateral Trade Architecture
  6. Key Facts & Data
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