The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.

We use cookies to improve your experience and serve personalized ads.

By clicking Accept, you consent to our use of advertising cookies. See our Privacy Policy for details.

ForexMediumUpdated•Originally published 23 February 2026•Updated 23 February 2026•

1 min read

US Tariff Shift to Section 122 Boosts Asian Markets; India Named Key Beneficiary

Donald Trump against maps of the US and Iran, with oil barrels, pipelines, derricks, and upward financial charts amidst flames.

Key Facts

1The US is moving from reciprocal IEEPA tariffs to a flat Section 122 surcharge.

3 months ago

Version History

Version 13 months ago

What changed: The story was updated to highlight India as a primary beneficiary of the US tariff policy shift, noting the reduction in effective tariff burdens and the support for ongoing trade talks.

The US government is transitioning its trade policy from reciprocal tariffs under IEEPA to a flat surcharge under Section 122. According to ING analysts, this shift provides significant relief across Asia, with India identified as a primary beneficiary of the reset. The removal of IEEPA surcharges is expected to substantially lower India's effective tariff burden, enhancing its export competitiveness. Furthermore, this tariff relief is anticipated to provide crucial support for India's ongoing trade negotiations with Washington. Deepali Bhargava of ING suggests that the new framework offers a more predictable environment for regional economies compared to previous emergency powers. Market participants expect this policy change to bolster Asian currencies and improve the outlook for export-driven growth in the region.