Lack of Clarity on Tariff Rates Confuse US Exporters
23 Feb 2026 8:00 PM IST23 Feb 2026 8:00 PM IST
With just one more day to go, the order on the additional 5 per cent has not come yet. This creates an uncertainty on the rates.
The new temporary tariff of 10 per cent on imports into the US will come into force from Tuesday. (Representational Image: DC)
Chennai: A temporary 10 per cent tariff on imports into the US is set to take effect from Tuesday, even as uncertainty persists over the implementation of an additional 5 per cent duty announced by US President Donald Trump. In the absence of a fresh executive order, it remains unclear whether the proposed increase to 15 per cent will come into force immediately. Even if notified, its legal validity could face challenge. After the US Supreme Court struck down tariffs imposed under emergency powers, President Trump announced a 10 per cent temporary duty, which was later raised to 15 per cent.
An executive order issued on February 20 provided for a temporary import surcharge of 10 per cent ad valorem from February 24 for a period of 150 days. However, with one day remaining, no order formalising the additional 5 per cent had been issued.
“The order has not come yet. It may come tonight,” Ajay Sahai, director general of FIEO, said.
Trade experts said the levy could be open to legal scrutiny. “As per the Section 122 of Trade Act, up to 15 per cent tariff can be imposed for up to 150 days. But the remedy is prescribed for the Balance of Payment problem and not the trade deficit. Hence, this can be challenged in the court,” said Ajay Srivastava, founder of GTRI.
Exporters said they were relieved that the tariff applies uniformly to all trade partners. “Whether it is 10 per cent or 15 per cent, the good thing is that it is applicable to everyone,” said Pankaj Chadha, chairman of EEPC.
There is also uncertainty regarding refunds. “We don’t know how long it will take for the refunds to come or the procedure to claim it,” he added.
“The order has not come yet. It may come tonight,” Ajay Sahai, director general of FIEO, said.
Trade experts said the levy could be open to legal scrutiny. “As per the Section 122 of Trade Act, up to 15 per cent tariff can be imposed for up to 150 days. But the remedy is prescribed for the Balance of Payment problem and not the trade deficit. Hence, this can be challenged in the court,” said Ajay Srivastava, founder of GTRI.
Exporters said they were relieved that the tariff applies uniformly to all trade partners. “Whether it is 10 per cent or 15 per cent, the good thing is that it is applicable to everyone,” said Pankaj Chadha, chairman of EEPC.
There is also uncertainty regarding refunds. “We don’t know how long it will take for the refunds to come or the procedure to claim it,” he added.
( Source : Deccan Chronicle )
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