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Country Tariff Guide · May 2026

India Tariffs 2026

India has no FTA with the US. A 10% reciprocal tariff baseline applies to all Indian goods after the proposed 26% rate was paused in April 2025. Section 232 adds 25% on steel and 10% on aluminum. A US-India trade deal is under negotiation but not yet concluded.

Reciprocal tariff

10%

26% paused — 90-day baseline

§232 Steel

25%

all Indian steel

§232 Aluminum

10%

all Indian aluminum

FTA status

None

deal under negotiation

The 2025 Reciprocal Tariff — What Happened

Apr 2, 2025

Section 122

Trump announces 26% 'reciprocal tariff' on India, citing India's high average tariff rate on US goods (Harleys at 100%, agriculture at 50–100%).

Apr 9, 2025

90-Day Pause

Most countries including India reduced to a 10% baseline reciprocal tariff. Pause intended to allow bilateral trade negotiations to proceed.

Ongoing 2026

US-India Trade Talks

Both governments working toward a phased trade deal. No final agreement as of May 2026. The 10% baseline remains in effect.

The 10% reciprocal tariff is stacked on top of MFN rates, not replacing them. A product with a 5% MFN rate pays approximately 15% total (5% MFN + 10% reciprocal). Section 232 steel/aluminum is separate and additional.

India Tariff Rates by Product (2026)

ProductHSMFN+Reciprocal+§232
Pharmaceuticals / generics30040%10%†—
Cotton apparel (t-shirts)610912–32%10%†—
Polished diamonds & gems7102–71030–6.5%10%†—
Engineering goods / machinery8400–84790–3.5%10%†—
Steel (flat-rolled)7208–72120–6.5%10%†25%
Aluminum (unwrought)76010–6.5%10%†10%
Shrimp & seafood03060–5%10%†—
IT software servicesN/A0%0%—
Chemicals & dyes2900–32990–6.5%10%†—
Electronics / components8471–85420%0%—

† Reciprocal tariff rate as of May 2026 (10% baseline, per April 9 pause order). Subject to change if trade deal is concluded.

India vs China — Sourcing Cost Comparison

India is one of the primary China-plus-one destinations. Without Section 301, many categories are significantly cheaper — even after the 10% reciprocal tariff.

Product ($50K)🇨🇳 China total duty🇮🇳 India total dutySavings
Pharma / generics$5,000 (10%)$5,000 (0% MFN + 10% recip)$0
Cotton apparel$22,000 (12% MFN + 25% §301 + 10%)$11,000 (12% MFN + 10% recip)$11,000
Polished diamonds$8,750 (5% + 25% §301 + 10%)$3,250 (0% MFN + 10% recip + CBP fees)$5,500
Engineering goods$12,500 (15% + 25% §301)$2,500 (0% MFN + 10% recip)$10,000
Steel (flat-rolled)$12,500 (§232 25%)$17,500 (§232 25% + 10% recip)−$5,000

Steel from India is more expensive than from China due to the stacked §232 + reciprocal tariff vs China's §232 only (no §301 on steel specifically).

US-India Trade Deal — 2026 Status

Active negotiations — no deal yet

Both the US and India have expressed interest in a phased trade deal covering industrial goods, pharmaceuticals, and digital trade. Key sticking points: India's protection of its agricultural sector, US concerns over India's data localization rules, and India's demand for US market access for generic drugs. Until a deal is concluded, the 10% reciprocal tariff baseline remains. Watch for announcements from USTR.

A concluded US-India FTA could dramatically reduce duty costs — potentially eliminating the 10% reciprocal tariff and lowering MFN rates on key sectors. Importers sourcing from India should monitor USTR.gov for deal updates.

India Tariffs — Frequently Asked Questions

Related Tariff Guides

Tariff data based on HTSUS 2026, executive orders through May 2026, and USTR guidance. Reciprocal tariff rates subject to change during ongoing US-India trade negotiations. Not legal or customs advice.

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Key Facts — India 2026

  • No US-India FTA (deal under negotiation)
  • Reciprocal tariff: 10% baseline (26% paused)
  • §232 Steel: 25%
  • §232 Aluminum: 10%
  • Pharma MFN: 0% (but +10% reciprocal)
  • Electronics: 0% ITA rate
  • No Section 301 (China-specific only)
  • MPF: 0.3464% min $32.71 max $634.62
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