US Implements 15% Global Import Surcharge Under Trade Act of 1974

United States Imposes Global Import Surcharge

The United States has implemented a 15% ad valorem global import surcharge, effective February 24, 2026. This new trade measure, enacted under the authority of the Trade Act of 1974, aims to address fundamental international payments problems. For Indian exporters, this development signifies a reduction in their tariff rate from a previous 18%.

Background to the New Trade Measure

This global import surcharge follows a significant ruling by the U.S. Supreme Court on February 20, 2026, which invalidated previous tariffs imposed under the International Emergency Economic Powers Act (IEEPA). In response, the administration pivoted to Section 122 of the Trade Act of 1974, which empowers the President to impose temporary import surcharges to address balance-of-payments deficits. An initial proclamation on February 20, 2026, announced a 10% ad valorem surcharge, with President Trump subsequently announcing on February 21, 2026, that this rate would be raised to 15%.

Details of the Surcharge and Exemptions

The newly implemented surcharge is a temporary measure, set to remain in effect for a period of 150 days, unless extended by an Act of Congress. Its stated purpose is to deal with the United States' 'large and serious balance-of-payments deficit.' The surcharge applies broadly to articles imported into the United States, though certain product categories are exempt. These exemptions include:

• Certain critical minerals
• Metals used in currency and bullion
• Energy and energy products
• Specific agricultural products
• Pharmaceuticals and pharmaceutical ingredients
• Certain electronics
• Designated passenger vehicles and parts

Impact on Indian Exporters

For Indian exporters, the implementation of this global surcharge represents a shift in their tariff landscape. Previously, Indian goods imported into the U.S. were subject to an 18% tariff rate, a figure that had been established following a framework for an interim India-U.S. trade deal. With the new global 15% ad valorem surcharge now in effect, Indian exporters will see their tariff rate reduced to this new, more uniform global standard. This change means that Indian products will no longer be subject to the higher country-specific duties that were in place prior to the Supreme Court's ruling and the subsequent implementation of the Section 122 surcharge.