4 hrs ago

US Tariffs on Indian Goods Shift Through Major Trade Developments

The United States and India have changed their import taxes several times since April 2025.

These taxes make goods from India more expensive when they enter the United States.

The first major increase included a 10% basic tariff and a 16% reciprocal tariff.

The United States later added another 25% tariff because India continued buying Russian oil.

This temporarily brought many Indian goods to a total of 50% in additional duties.

In February 2026, the two countries agreed on a trade framework, but a planned 18% tariff was never used.

The US Supreme Court later ended the reciprocal-tariff system.

Today, most covered Indian exports face a 10% Section 301 tariff plus normal MFN duties, while some sectors face higher rates or exemptions.

Key facts

Initial tariff: On April 2, 2025, the United States announced a 26% tariff on Indian goods: a 10% baseline tariff plus a 16% reciprocal tariff.
August 2025 rate: An additional 25% tariff linked to Indian purchases of Russian oil brought total additional duties on most covered goods to 50%.
Trade agreement: On February 2, 2026, the countries agreed to reduce the reciprocal tariff to 18%, but the rate never came into effect.
Supreme Court ruling: On February 20, 2026, the US Supreme Court struck down the reciprocal-tariff system.
Section 301 tariff: A 10% tariff on India was imposed on July 24, 2026, citing concerns related to forced labour.
Sectoral duties: Steel and aluminium face 50% duties, while auto components face 25% duties.
Exemptions: Smartphones, medicines, and energy products are exempted, along with certain other goods.

thehindubusinessline.com · 5 hrs ago