How much tariff has America imposed on India now, what is the matter of Section 301? Know everything in 6 points

By Samira Vishwas On Jul 24, 2026

America has decided to impose 10% tariff on imports coming from 60 countries including India. In the initial proposal, the possibility of imposing 12.5% duty on India was raised, but in the final decision, India got some relief and the duty rate was fixed at 10%. This decision is considered important from the point of view of India-US trade relations and the global trade system.

This announcement has come at a time when talks on trade deal between India and America are reaching the final stage. Although India has got relief from 10% tariff, the ongoing second investigation under Section 301 and the situation of competing countries may create new challenges for Indian exporters in the future.

Know complete information in 6 points

1. America has imposed 10% duty on products imported from many countries of Asia and Latin America including India, Pakistan, Sri Lanka, Bangladesh. This tariff has been imposed on countries which the US believes have not taken sufficient steps to effectively ban the import of products made with forced labour. The new fee will replace a temporary 10% global tariff implemented in February.

2. The US Trade Representative’s office had earlier indicated that 12.5% tariff could be imposed on India. During the public consultation process, the Government of India and industry organizations presented their views citing several legal provisions including the ban on forced labor in the Constitution. After this, in the final decision, the duty rate for India was reduced to 10%, which is being considered as a positive sign for India.

3. Announcing the tariffs, US Trade Representative Jamieson Greer said “Today’s action is the first step towards reforming human rights abuses and distorted trade practices, with the aim of improving the welfare of workers around the world. I am encouraged by trading partners who have been quick to adopt forced labor-related import restrictions, and I look forward to ensuring their effective implementation.”

A US official exclusively told ANI that India was slated for 12.5% tariff, but based on productive discussions about labor practices, they got 10% tariff under Section 301 of the Trade Act of 1974.
— ANI (@ANI) July 23, 2026

4. This decision has been taken after two separate investigations under Section 301 started by the Trump administration in March. Under this law, America can take trade action against countries that are accused of unfair or discriminatory trade practices. Unlike the temporary tariff imposed under Section 122, there is no time limit on the duty imposed under Section 301. However, it is mandatory to complete formal investigation before implementing them.

5. Negotiations on a comprehensive trade agreement are ongoing between India and America. In February, both the countries had agreed on a framework under which it was proposed to reduce the effective tariff on Indian exports from 50% to 18%. It also mentioned 25% additional duty related to the purchase of Russian oil by India. In return, India had proposed to buy $500 billion worth of American products over the next five years and provide greater access to the Indian market for selected American agricultural products.

6. Commerce Minister Piyush Goyal has already said that the proposed 18% tariff can give India an edge over South-East Asian countries and neighboring countries. However, uncertainty about the future of this arrangement has increased after the US Supreme Court canceled the Trump administration’s proposed global reciprocal tariff.