The United States Trade Representative (USTR) has announced final Section 301 measures on July 23, 2026, imposing an additional 10% ad valorem duty on imports from India.
This marks a reduction from the 12.5% duty initially proposed in June, following sustained engagement by the Government of India during the investigation into forced labour‑related trade practices.
India’s placement in the lower tariff tier provides relative advantage to its exports compared to other economies. Crucially, a substantial share of India’s exports—including generic pharmaceuticals, smartphones, and certain specified products—remain outside the scope of the additional duty. Products already covered under Section 232 measures, such as steel, aluminium, and auto parts, are also exempt.
Officials estimate that 45% of India’s exports to the U.S. remain unaffected, while the remaining 55% will attract the 10% duty. The government continues negotiations with Washington on a textile‑specific mechanism and the early conclusion of the India‑U.S. Bilateral Trade Agreement.
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