India Tariffs 2026
India has no FTA with the US. Since 24 July 2026 Indian goods pay MFN plus the 10% forced-labor Section 301 tariff — 2.5 points less than China, Vietnam or Thailand. Steel, aluminum and copper pay 50% under Section 232 instead, and generic pharmaceuticals are exempt.
Forced-labor tariff
10%
on top of MFN
§232 Steel & aluminum
50%
full value, since Apr 2026
Generic pharma
0%
exempt
FTA status
None
deal under negotiation
From the 26% Reciprocal Tariff to Today's 10%
Apr 2, 2025
Reciprocal tariff
A 26% IEEPA 'reciprocal tariff' is announced on India, cut to a 10% baseline on April 9.
Feb 20, 2026
Struck down
The Supreme Court rules IEEPA does not authorise tariffs. A flat 10% Section 122 surcharge applies from February 24.
Jul 24, 2026
Forced-labor tariff
Section 122 expires. India lands in the 10% tier of USTR's forced-labor Section 301 tariff on 60 economies.
The 10% forced-labor tariff is stacked on top of MFN rates, not replacing them. A product with a 5% MFN rate pays 15% in total. Section 232 goods (steel, aluminum, copper, autos) pay the 232 rate instead of the 10%.
India Tariff Rates by Product (2026)
| Product | HS | MFN | +Forced-labor | +§232 |
|---|---|---|---|---|
| Pharmaceuticals / generics | 3004 | 0% | exempt | — |
| Cotton apparel (t-shirts) | 6109 | 16.5% | 10% | — |
| Polished diamonds & gems | 7102–7103 | 0–6.5% | 10% | — |
| Engineering goods / machinery | 8400–8479 | 0–3.5% | 10% | — |
| Steel (flat-rolled) | 7208–7212 | 0% | exempt | 50% |
| Aluminum (unwrought) | 7601 | 0–2.6% | exempt | 50% |
| Shrimp & seafood | 0306 | 0% | 10% | — |
| IT software services | N/A | 0% | 0% | — |
| Chemicals & dyes | 2900–3299 | 0–6.5% | 10% | — |
| Computers, phones, chips | 8471–8542 | 0% | 0% | — |
Forced-labor Section 301 tariff as of September 2026 (India: 10% tier). Section 232 goods and enumerated pharmaceuticals are exempt from it.
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% forced-labor tariff.
| Product ($50K) | 🇨🇳 China total duty | 🇮🇳 India total duty | Savings |
|---|---|---|---|
| Generic pharma (3004) | $0 (0% MFN, exempt) | $0 (0% MFN, exempt) | $0 |
| Cotton T-shirts (6109.10) | $18,250 (16.5% + 7.5% §301 + 12.5%) | $13,250 (16.5% + 10%) | $5,000 |
| Polished diamonds (7102.39) | $10,000 (0% + 7.5% §301 + 12.5%) | $5,000 (0% + 10%) | $5,000 |
| Bearings / gearing (8483.40) | $20,000 (2.5% + 25% §301 + 12.5%) | $6,250 (2.5% + 10%) | $13,750 |
| Steel (flat-rolled) | $37,500 (25% §301 + 50% §232) | $25,000 (50% §232) | $12,500 |
Duty only, on the FOB value. Section 232 goods skip the forced-labor tariff from both countries; Chinese steel still pays 25% Section 301 on top of the 50%.
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% forced-labor tariff applies. Watch for announcements from USTR.
A concluded US-India FTA could dramatically reduce duty costs — potentially moving India out of the forced-labor tariff and lowering MFN rates on key sectors. Importers sourcing from India should monitor USTR.gov for deal updates.
India Tariffs — Frequently Asked Questions
Indian goods pay MFN duty plus the forced-labor Section 301 tariff at 10% — India is in the 10% tier of the 60 economies covered since 24 July 2026. Section 232 goods pay that instead: steel, aluminum and copper 50% of full value. Enumerated pharmaceuticals are exempt from the forced-labor tariff. India pays no Section 301 list duties, which apply only to China.
It is gone. The 26% rate announced on 2 April 2025 was an IEEPA tariff, cut to a 10% baseline a week later; the Supreme Court ruled on 20 February 2026 that IEEPA does not authorise tariffs. A flat 10% Section 122 surcharge applied from 24 February to 24 July 2026, when it expired. Since then Indian goods pay the 10% forced-labor Section 301 tariff.
No. The US and India have no free trade agreement. Bilateral trade talks have been ongoing, with both sides working toward a phased deal covering specific sectors. Until one is concluded, Indian goods pay MFN rates plus the 10% forced-labor tariff (or Section 232 for covered goods).
Generic medicines (HS 3004) have a 0% MFN rate and enumerated pharmaceuticals are exempt from the forced-labor tariff, so most Indian generics enter at 0%. Patented pharmaceuticals and their active ingredients face the Section 232 pharmaceutical tariff (100% from 31 July / 29 September 2026, lower for some partners). India supplies about 40% of US generic drug demand.
Indian steel pays Section 232 at 50% of the full customs value (25% for derivative articles) since the 6 April 2026 restructuring. Section 232 goods do not also pay the 10% forced-labor tariff. Flat-rolled steel at 0% MFN therefore pays 50% — the same as steel from every origin except the UK.
India avoids China's Section 301 list duties (25% on most industrial goods, 7.5% on apparel) and pays 10% instead of China's 12.5% forced-labor tariff. $50,000 of cotton T-shirts: $13,250 in duty from India vs $18,250 from China. Engineering goods at 2.5% MFN: $6,250 vs $20,000. Steel: $25,000 vs $37,500 (both 50% §232, plus 25% §301 for China). Generic pharma: 0% from both.
Related Tariff Guides
Importing Garments from India
Chapters 61–62, leather jackets
India → US Landed Cost
Duty, freight and fees
EU–India Trade Agreement
What changes for exporters
China Tariffs 2026
Section 301: +7.5–25%
Vietnam Tariffs 2026
MFN + ADD/CVD
Canada Tariffs 2026
USMCA 0%, +50% on listed goods
Mexico Tariffs 2026
USMCA 0%, else 10%
Taiwan Tariffs 2026
0% chips, no §301
Tariff Calculator
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Tariff data based on HTSUS 2026 and USTR/CBP actions through September 2026. Rates can change with US-India negotiations and the pending court challenge to the forced-labor tariff. Not legal or customs advice.
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Key Facts — India 2026
- No US-India FTA (deal under negotiation)
- Forced-labor tariff: 10% (India tier)
- §232 steel, aluminum, copper: 50%
- Generic pharma: 0% (exempt)
- Computers & chips: 0% (exempt)
- IEEPA 26% rate: struck down Feb 2026
- No Section 301 (China-specific only)
- MPF: 0.3464%, min $34.58 max $670.86