India to Benefit as Trump Administration Cuts Global Tariff to 15%, Trade Deal Likely Next Month

New Delhi: Trump had earlier announced the framework for an interim trade deal with India in early February. In that, America completely removed the additional 25% punishment tariff imposed on India (due to buying oil from Russia) and reduced the reciprocal tariff from 25% to 18%. But now the Supreme Court has declared Trump's huge global tariffs illegal.

After this, Trump made a new plan:

• Imposed a temporary global import tariff, which was earlier 10% and has now been increased to 15%.
• This new 15% tariff is applicable from 24 February 2026 and is for only 150 days (i.e. for a few months). 
• The good thing for India is that the earlier special rate of 18% has now been removed, and India has also come under this new 15% global rate (except in some sectors). It means there is some relief from earlier.

Is this preparation for a big trade deal?

After the Modi-Trump talks in early February, the framework of the interim agreement was made. India promised to buy less oil from Russia, reduce tariffs on American goods and increase cooperation in defense tech. Trump also reduced tariffs. But everything got a bit complicated due to the decision of the Supreme Court, yet this step is going towards a big full trade agreement. Experts are saying that something big can happen through negotiations in 150 days.

Which sectors of India will benefit the most?

• Textiles, garments, leather, gems and jewelery – these are the most exported to the US, if they become cheaper now then the demand will increase.
• IT Services, Engineering Products, and Pharma – Some sectors may get relaxation.
• Overall, exports will increase, dollars will come, and foreign exchange will strengthen. Textile hubs like Punjab can benefit well.

Why was such a high tariff imposed in the first place?

Trump had imposed 25% reciprocal 25% extra punishment on India in 2025 (for buying oil from Russia). The total had reached 50%. All this happened in the name of trade deficit and "fair trade". But now the court has canceled the old tariffs, so a new temporary one has come.

What changed due to Modi-Trump talk?

There was a phone call between the two leaders earlier this month. Only after that was the punishment tariff removed, and the matter was settled at 18%.

What will happen next?

This 15% temporary tariff is for only 150 days. If negotiations go well, tariffs could be further reduced or even zero in some sectors. Cooperation in defence, technology and investment will also increase. India's global position will be strengthened. Overall a positive sign, but a bit of a wait-and-watch scene.