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Country Tariff Guide · September 2026

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)

ProductHSMFN+Forced-labor+§232
Pharmaceuticals / generics30040%exempt—
Cotton apparel (t-shirts)610916.5%10%—
Polished diamonds & gems7102–71030–6.5%10%—
Engineering goods / machinery8400–84790–3.5%10%—
Steel (flat-rolled)7208–72120%exempt50%
Aluminum (unwrought)76010–2.6%exempt50%
Shrimp & seafood03060%10%—
IT software servicesN/A0%0%—
Chemicals & dyes2900–32990–6.5%10%—
Computers, phones, chips8471–85420%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 dutySavings
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

Related Tariff Guides

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
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