US tariffs on Indian goods: where things stand in October 2026

Few trade lanes have seen as much change as India to the United States. In just over a year the extra tariff on most Indian goods has moved from 50% to 18% to 10%, and the legal basis has changed three times. Here is where things stand and what it means for US importers.

How we got here

• August 2025: the US raised tariffs on most Indian goods to 50%, made up of a 25% "reciprocal" tariff and a further 25% linked to India's purchases of Russian oil.
• February 2026: the two governments announced a framework for an interim trade agreement. The reciprocal rate was cut to 18% and the additional 25% was removed.
• 20 February 2026: the US Supreme Court ruled in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorise the President to impose tariffs. The IEEPA tariffs, including those on India, fell away.
• February to July 2026: the administration replaced them with a temporary 10% global surcharge under Section 122 of the Trade Act of 1974, which the law limits to 150 days. The Court of International Trade found it unlawful on 7 May 2026, but collection continued while the government appealed. It expired on 24 July 2026.
• 24 July 2026: USTR introduced a Section 301 tariff in its place. Most Indian goods now pay an additional 10% on top of the normal duty rate (91 Fed. Reg. 47318).

What applies today

For most products from India, a US importer pays the standard most favoured nation duty for the tariff code plus the 10% Section 301 duty. Steel and aluminium are treated separately under Section 232, at 50% for most steel and aluminium products and 25% for many derivative products. Goods subject to Section 232 are not charged the Section 301 duty as well.

The Section 301 action has no fixed end date, unlike Section 122, and it is already being challenged in court. A full US–India trade agreement is still under negotiation. In comments reported in 2026, the US Ambassador to India said the "big items" were done but gave no date.

Refunds of earlier duties

Importers who paid IEEPA tariffs may be due refunds. US Customs and Border Protection opened its refund process in April 2026. Ask your customs broker whether your entries qualify, and keep your entry records together.

What this means for buyers

• The cost of buying from India is much lower than in late 2025, which has reopened categories such as home textiles, rugs and processed foods for many US buyers.
• The rate can still change. Agree in writing who carries the risk of a tariff change between order and arrival, and price on FOB or CIF terms so duty stays visible.
• Check your exact tariff code. The total duty depends on the base rate for your product, not just the 10%.

Our team can quote landed costs for your product and port. Ask for a quote.

Sources

• Trade Compliance Resource Hub, Trump 2.0 tariff tracker (September 2026)
• Global Trade Alert, From IEEPA to Section 122
• Miller & Chevalier, Supreme Court finds IEEPA tariffs unlawful
• The White House, United States–India Joint Statement (February 2026)
• Forbes India, Sergio Gor on the India–US trade deal

This article is general information, not legal, tax or customs advice. Trade rules change often, so confirm the position for your product with your customs broker before you ship.