Section 122 surprise: Trump’s new 15% global tax offers crucial 5-month safety net for Indian exports

Subscribe to enjoy similar stories. New Delhi: India and the US have postponed talks on the proposed interim bilateral trade agreement following recent developments in Washington, including the US Supreme Court striking down the reciprocal tariffs imposed by President Donald Trump and the subsequent imposition of a new 15% universal tariff under Section 122 of the Trade Act of 1974.

Section 122 allows the US president to levy a temporary import surcharge of up to 15% for up to 150 days, unless extended by Congress. The provision can be invoked in situations involving serious balance of payments or international financial pressures.

According to a senior official aware of the matter, the visit of India's chief negotiator for US trade talks has been postponed, and a date for the next round of in-person talks will be decided later. A three-day round of discussions between the chief trade negotiators of the two countries was to begin in the US on 23 February.

The postponement comes at a time when the US has capped additional tariffs at 15% for all countries for a five-month (150-day) period, which is being seen by Indian exporters as a rare window of clarity in an otherwise volatile trade environment, particularly for labour-intensive sectors that depend heavily on the American market. Under the revised framework, imports into the US will face a uniform 15% tariff, in addition to the standard Most Favoured Nation (MFN) duty applicable to each product category.

Crucially, the 15% rate will apply equally across competing supplier nations, removing the uncertainty and country-specific tariff differentials that had distorted pricing calculations in recent months, experts said. Query sent on Sunday to commerce secretary Rajesh