Trump Administration Prepares New Tariffs as Temporary Duties Expire

A temporary 10% import surcharge imposed by the Donald Trump administration under Section 122 of the Trade Act of 1974 is scheduled to expire at 12:01 a.m. EDT on July 24, 2026. This measure was previously implemented after the Supreme Court of the United States struck down reciprocal tariffs in February 2026, ruling that the administration lacked authority under the International Emergency Economic Powers Act.

To replace the expiring duty, the administration is expected to announce a new tariff regime on July 23. This new strategy, developed by the United States Trade Representative, targets 60 trading partners, including India and Pakistan. The proposed duties, ranging from 10% to 12.5%, are based on Section 301 investigations into forced labor.

White House Press Secretary Karoline Leavitt confirmed an announcement is imminent. If the administration fails to implement these new duties or an extension, approximately 92% of India's merchandise exports to the United States would revert to normal Most Favoured Nation tariffs. Meanwhile, India and the United States remain engaged in negotiations for a trade pact to establish competitive tariff advantages.