The 150‑day temporary 10% US import tariff on Indian goods expires today at 9:31 am IST. Without a fresh measure, Indian exports revert to pre‑April 2025 MFN rates, while ongoing Section 301 probes could trigger new duties soon.

Key Takeaways

  • The 10% tariff expires today at 9:31 am IST.
  • If no new action, Indian goods will fall back to standard MFN duties.
  • Section 301 investigations may bring fresh tariff measures.

Historical Background

In April 2025, President Donald Trump announced sweeping reciprocal tariffs, including a proposed 26% duty on Indian imports. The US Supreme Court later struck down those tariffs, and on February 24 the administration introduced a temporary 10% surcharge under Section 122 of the Trade Act of 1974.

The Section 122 measure was designed to last a maximum of 150 days, after which it automatically expires based on the date US customs clears the goods, not when they leave India.

What It Means for India

Should no new announcement be made, Indian exporters will once again face only the normal MFN duty – for example, a shirt that normally attracts a 5% MFN tariff will lose the extra 10% surcharge.

According to the Global Trade Research Initiative (GTRI), roughly 92% of India’s $87.2 billion merchandise exports to the United States will revert to WTO‑compatible MFN rates.

Why This Matters

BozokMedia analysis shows that while the expiry of Section 122 provides immediate cost relief for Indian manufacturers, the looming conclusion of Section 301 investigations could re‑introduce sector‑specific duties, keeping market uncertainty high.

"The end of the Section 122 surcharge is a short‑term breather; the real risk lies in the pending Section 301 outcomes," says GTRI founder Ajay Srivastava.
Did You Know?: The Section 122 tariff is calculated at the moment US customs clears the product for consumption, not when it ships from India.

New Tariff Threat Still Looms

The US has signaled that a "final responsive action" under its ongoing Section 301 investigations—covering 60 trading partners including India—will be announced as early as tomorrow. Proposed tariffs range up to 12.5% for forced‑labour allegations and 10% for excess capacity concerns.

Frequently Asked Questions

Question 1: How will the tariff expiry affect the price of Indian goods in the US market?
Answer: Prices are expected to drop as the additional 10% cost disappears, though other policy factors may still influence final pricing.

Question 2: Which sectors could face new duties under the Section 301 probe?
Answer: Potential targets include generic medicines, smartphones, semiconductors, and certain energy products.