Archive · 31 Jul 2026
US Section 301 Tariffs on India Face Legal Challenges
The United States has put extra taxes on some goods coming from India.
These taxes are part of a rule called Section 301 that lets the U.S. government try to stop bad trade practices.
Some people think the president might not have the power to do this.
Two U.S. companies have already sued to stop the taxes.
India is waiting to see if the courts will let the taxes stay or not.
U.S. imposed 10–12.5% tariffs on several countries under Section 301.
Indian goods face an extra 10% duty beyond normal rates.
Legal experts say the president may lack authority to impose such tariffs.
Two U.S. companies have sued the tariffs in the U.S. Court of International Trade.
India is negotiating a trade deal while awaiting legal clarity.
- Who
- United States Office of the US Trade Representative
- What
- Imposed tariffs on Indian goods under Section 301
- When
- Last week
- Where
- United States
- Why
- To address forced‑labour concerns and excess capacity
- Tariff rate on Indian goods
- 10% additional duty beyond MFN rates
- Legal basis
- Section 301 of the US Trade Act of 1974
- Imposing authority
- Office of the US Trade Representative (USTR)
- Legal challenge status
- Two US companies have filed lawsuits
- Affected countries
- India, EU, Taiwan, Japan, South Korea, Switzerland