Importing from India: Tariff Rates, Duties, and What U.S. Importers Pay

What Are the Current U.S. Tariff Rates on Imports from India?

U.S. importers currently pay a layered tariff on Indian goods: the standard MFN (Most Favored Nation) duty rate based on the product's HTS code, plus a 10% Section 122 surcharge that applies to nearly all countries. Products covered by Section 232 (steel, aluminum, autos) face a 25% sectoral tariff instead of the Section 122 surcharge. India is not subject to Section 301 tariffs, which currently apply only to Chinese-origin goods.

How Did the U.S.-India Trade Deal Change Tariff Rates?

In February 2026, the U.S. and India announced an interim trade framework that reduced the reciprocal tariff rate on Indian goods from 25% to 18%. However, after the Supreme Court struck down all IEEPA-based tariffs on February 20, 2026, the 18% rate was invalidated along with every other country-specific IEEPA tariff. The replacement Section 122 surcharge of 10% is now the operative additional tariff on Indian goods, set to expire July 24, 2026.

The U.S. imported $103.8 billion in goods from India in 2025, making India the ninth-largest source of U.S. imports. The goods trade deficit with India reached $58.2 billion that year, a 27.1% increase over 2024. For importers sourcing pharmaceuticals, gems, textiles, or chemicals from India, understanding the full duty stack is essential to accurate landed cost planning.

Last updated: March 2026

The Current U.S. Tariff Structure on Indian Goods

The tariff landscape for Indian imports has shifted multiple times since April 2025. Here is where things stand as of March 2026.

Timeline of U.S.-India Tariff Changes

Date	Action	Effective Rate
April 2, 2025	IEEPA reciprocal tariff announced at 26% (10% baseline + country-specific rate)	26% on most goods
August 7, 2025	Additional 25% tariff imposed over India's Russian oil purchases	50% on most goods
February 7, 2026	U.S.-India interim deal: oil-related 25% tariff removed, reciprocal rate reduced to 18%	18% on most goods
February 20, 2026	Supreme Court strikes down all IEEPA tariffs	0% additional (MFN only)
February 24, 2026	Section 122 surcharge takes effect	MFN + 10% on most goods

The White House fact sheet on the Section 122 surcharge confirmed the 10% rate applies uniformly to all countries. Unlike the IEEPA regime, there are no country-specific adjustments or bilateral deal carve-outs under Section 122.

What Indian Goods Are Exempt from Section 122?

Not everything from India faces the 10% surcharge. Key exemptions include:

Products covered by Section 232 tariffs: Steel, aluminum, copper, autos, and semiconductors already subject to 25% Section 232 duties are excluded from the Section 122 surcharge (no stacking).
Annex II product exceptions: A list of approximately 1,100 product codes (mirroring prior IEEPA exemptions) covering natural resources, certain agricultural inputs, and other items not produced domestically in sufficient quantities.
Products entering under Chapter 98 provisions: Goods qualifying for special duty-free treatment under Chapter 98 of the HTSUS.

GingerControl's Tariff Calculator covers the full U.S. tariff stack, including base MFN duty, Section 232, Section 301, Chapter 99, and Section 122, with 200+ country side-by-side comparison. Enter your HTS code and country of origin to see the complete duty breakdown for Indian goods.

What Are the MFN Duty Rates on Top Indian Exports?

India's top exports to the U.S. span pharmaceuticals, precious stones, textiles, organic chemicals, and machinery. The MFN rate varies significantly by product category.

Product Category	Key HTS Chapters	Typical MFN Rate	Section 232 Applies?	Section 122 Applies?
Pharmaceuticals (generic drugs, APIs)	Ch. 29, 30	0% to 6.5%	No	Yes (10%)
Gems, diamonds, precious stones	Ch. 71	0% to 6.5%	No	Yes (10%)
Textiles and apparel	Ch. 50-63	5% to 32%	No	Yes (10%)
Organic chemicals	Ch. 29	0% to 6.5%	No	Yes (10%)
Iron and steel articles	Ch. 72, 73	0% to 6%	Yes (25%)	No (Section 232 primacy)
Aluminum articles	Ch. 76	0% to 6.5%	Yes (25%)	No (Section 232 primacy)
Machinery and equipment	Ch. 84	0% to 6%	No	Yes (10%)
Auto components	Ch. 87	0% to 4%	Yes (25% on covered parts)	Depends on coverage
Seafood (shrimp, frozen fish)	Ch. 03, 16	0% to 10%	No	Yes (10%)
Spices and food products	Ch. 09, 20, 21	0% to 14.9%	No	Yes (10%)

A few important notes on specific sectors:

Pharmaceuticals: India supplies roughly 40% of U.S. generic drug volume. Most finished pharmaceutical preparations under HTS Chapter 30 enter at 0% MFN duty. Under the U.S.-India interim trade framework, generic pharmaceuticals were identified for potential removal from the reciprocal tariff entirely. With the shift to Section 122, the 10% surcharge now applies to these products unless they fall under an Annex II exemption.

Gems and diamonds: Cut and polished diamonds (HTS 7102.39) generally enter duty-free at the MFN level. The interim trade framework also identified gems and diamonds for potential tariff removal. Under Section 122, these products face the 10% surcharge.

Solar cells and panels: In February 2026, the U.S. Department of Commerce announced preliminary countervailing duties of approximately 126% on crystalline silicon photovoltaic cells and modules from India, a separate action from the broader tariff regime.

How Does the U.S.-India Interim Trade Deal Affect Importers?

The U.S.-India joint statement issued February 6, 2026, outlined a framework for an interim agreement. While the IEEPA tariffs it was built on have since been invalidated, the framework remains relevant because the administration has signaled its intent to honor bilateral trade commitments through alternative legal authorities.

Key elements importers should track:

Reciprocal tariff reduction target of 18%: The negotiated rate was 18%, down from 25%. If the administration implements country-specific tariffs through Section 301 investigations (launched March 11, 2026, with India among 16 target economies), the 18% rate may serve as the benchmark.
Product-specific tariff relief: The framework identified generic pharmaceuticals, gems and diamonds, and aircraft parts as categories where the U.S. would remove the reciprocal tariff entirely upon successful conclusion of the interim agreement.
Section 232 carve-outs: The joint statement included provisions for removing certain Section 232 steel, aluminum, and copper tariffs on aircraft and aircraft parts from India, plus a preferential tariff rate quota for Indian-origin auto parts.
India's commitments: India committed to eliminating or reducing tariffs on U.S. industrial goods and agricultural products, purchasing $500 billion in U.S. products over five years, and addressing non-tariff barriers in medical devices, ICT, and agriculture.

GingerControl is a trade compliance AI platform that helps importers, exporters, and customs brokers classify products, simulate tariff costs, and track policy changes. The Tariff Calculator provides date-sensitive calculations, so importers can model duty exposure under different tariff scenarios.

What Section 301 Risk Does India Face?

India is not currently subject to Section 301 tariffs. The existing Section 301 tariffs (Lists 1 through 4A) apply exclusively to Chinese-origin goods.

However, on March 11, 2026, USTR launched new Section 301 investigations into "structural excess capacity and production" targeting 16 economies including India. A separate investigation into forced labor practices covers 60 economies, also including India. Written comments are due April 15, 2026, with public hearings starting in May.

These investigations are explicitly designed to replace the invalidated IEEPA tariffs with tariffs grounded in Section 301 authority, which has no statutory cap on rate or duration. Importers sourcing from India should monitor these proceedings closely. If USTR determines that India's industrial policies burden U.S. commerce, the resulting tariffs could be sector-specific or broad-based.

How to Calculate the Total Duty on an Import from India

Here is a worked example for a common import scenario.

Product: Cotton bed sheets (HTS 6302.21.50) Declared value (CIF): $50,000 MFN duty rate: 9.3% Country of origin: India

Duty Layer	Rate	Amount
MFN base duty	9.3%	$4,650
Section 232	N/A (not a covered product)	$0
Section 301	N/A (India not subject)	$0
Section 122 surcharge	10%	$5,000
Merchandise Processing Fee (MPF)	0.3464% (min $31.67, max $614.35)	$173.20
Harbor Maintenance Fee (HMF)	0.125% (ocean shipments)	$62.50
Total estimated duties and fees		$9,885.70
Effective duty rate		~19.8%

This example does not include AD/CVD duties, which apply to specific Indian products (certain steel, shrimp, and other goods subject to antidumping or countervailing duty orders). Always verify whether your HTS code is covered by an active AD/CVD order.

Use GingerControl's Tariff Calculator to run this calculation with your specific HTS code, entry date, and country of origin. The calculator shows every duty component transparently, so you can see exactly where your costs come from.

FAQ

What is the current tariff rate on imports from India?

Indian goods are subject to the standard MFN duty rate (which varies by HTS code) plus a 10% Section 122 surcharge effective February 24, 2026. Products covered by Section 232 (steel, aluminum, autos, semiconductors) face a 25% tariff instead of the Section 122 surcharge. India is not currently subject to Section 301 tariffs.

Are pharmaceuticals from India subject to tariffs?

Most finished pharmaceutical preparations enter at 0% MFN duty under HTS Chapter 30. However, the 10% Section 122 surcharge currently applies unless the product is listed in the Annex II exemptions. Under the U.S.-India interim framework, generic pharmaceuticals were identified for potential tariff removal, but that framework has not yet been implemented through a binding agreement.

Does India have a free trade agreement with the United States?

No. The U.S. and India do not have a free trade agreement. The February 2026 interim trade framework is a bilateral deal that set a reduced reciprocal tariff rate, but it was built on IEEPA authority that the Supreme Court subsequently invalidated. Negotiations toward a broader Bilateral Trade Agreement are ongoing.

How does India's tariff rate compare to China and Vietnam?

Under the current Section 122 regime, all three countries face the same 10% surcharge. However, Chinese goods also face Section 301 tariffs of 7.5% to 25% (plus higher rates on specific product categories like EVs and batteries). Vietnam and India do not face Section 301 tariffs. Section 232 tariffs on steel (25%) and aluminum (25%) apply regardless of country of origin.

Will India face new Section 301 tariffs?

USTR launched Section 301 investigations on March 11, 2026, covering India and 15 other economies. These investigations examine structural excess capacity in manufacturing sectors. If USTR makes an affirmative determination, it could impose sector-specific or broad-based tariffs on Indian goods. The timeline is compressed, with public comments due April 15, 2026.

Can I use GingerControl to calculate duties on Indian imports?

Yes. GingerControl's Tariff Calculator covers the full U.S. tariff stack for Indian-origin goods: MFN base duty, Section 232, Section 122, and any applicable AD/CVD rates. Enter your HTS code, select India as the country of origin, and the calculator will show every duty component with a transparent breakdown. It also supports 200+ country side-by-side comparison, so you can evaluate sourcing alternatives.

What is the Merchandise Processing Fee (MPF) on Indian goods?

The MPF is 0.3464% of the entered value, with a minimum of $31.67 and a maximum of $614.35 per entry. This fee applies to all formal entries regardless of country of origin. Ocean shipments also owe a Harbor Maintenance Fee (HMF) of 0.125% of the cargo value.

Ready to Calculate Your India Import Duties?

The tariff landscape for Indian goods has shifted repeatedly since April 2025, and new Section 301 investigations could change rates again. GingerControl's Tariff Calculator provides date-sensitive, transparent duty calculations across the full U.S. tariff stack, including base MFN duty, Section 232, Section 301, Chapter 99, and Section 122 for 200+ countries. Try it free →

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References

[REF 1] USTR — India Trade Data Data cited: U.S. goods imports from India totaled $103.8 billion in 2025; trade deficit of $58.2 billion Source: USTR India Country Page Published: 2026

[REF 2] White House — United States-India Joint Statement Data cited: 18% reciprocal tariff rate, $500 billion purchase commitment, product-specific tariff relief categories Source: White House Joint Statement Published: February 6, 2026

[REF 3] White House — Section 122 Fact Sheet Data cited: 10% ad valorem import duty, 150-day duration, exemption categories Source: White House Fact Sheet Published: February 20, 2026

[REF 4] White & Case — Section 122 Tariff Analysis Data cited: Section 122 tariff structure, Section 232 primacy, product exemptions Source: White & Case Insight Published: February 2026

[REF 5] Holland & Knight — Section 301 Investigations Data cited: 16 economies targeted including India, March 11 launch date, April 15 comment deadline Source: Holland & Knight Insight Published: March 2026

[REF 6] Troutman Pepper — India IEEPA Tariff Rescission Data cited: Removal of 25% oil-related duty, February 7 effective date, interaction with Section 232 and Section 301 Source: Troutman Pepper Insight Published: February 17, 2026

[REF 7] BEA — U.S. International Trade in Goods and Services, Annual 2025 Data cited: U.S. goods trade deficit with India of $58.2 billion in 2025 Source: BEA Trade Release Published: February 2026

[REF 8] The Budget Lab at Yale — State of Tariffs: March 9, 2026 Data cited: Overall effective tariff rate of 10.5% under Section 122, Section 122 expiration date Source: Yale Budget Lab Published: March 9, 2026