Archive · 19 Sep 2026
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.
The United States initially announced a 26% tariff on Indian goods on April 2, 2025.
A 25% tariff linked to India’s Russian oil purchases raised total additional duties to 50% in August 2025.
A February 2026 trade agreement proposed reducing the reciprocal tariff to 18%, but that rate never took effect.
After the US Supreme Court struck down the reciprocal-tariff system, the United States introduced new global and India-specific tariffs.
Currently, most Indian exports face a 10% Section 301 tariff plus applicable MFN duties, with additional sectoral tariffs for some goods.
- Who
- The United States, India, President Donald Trump, and the US Supreme Court are central to the tariff developments.
- What
- The United States changed tariffs on Indian goods several times, including reciprocal, Russia-related, global, and Section 301 duties.
- When
- The developments occurred from April 2, 2025, through September 18, 2026; the article was published September 19, 2026.
- Where
- The tariffs apply to Indian goods entering the United States.
- Why
- The stated reasons included reciprocal trade measures, India’s purchases of Russian oil, concerns about forced labour, and legislation targeting countries buying Russian energy.
- 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.