Import Duty from India to US in 2026: Tariff Rates & Complete Guide
India is one of the fastest-growing US import sources — $103.8 billion in goods imports in 2025, up nearly 19% year-over-year. But "no Section 301" doesn't mean duty-free. Here's what you actually pay, why the GSP situation matters, and how to calculate what a shipment from India will really cost you.
In this guide
Current US Tariff Rates on Indian Goods (March 2026)
India doesn't have a free trade agreement with the US. It's not subject to Section 301 (that's China-only). But it's also not getting any special deal. What you're working with:
| Tariff Layer | Rate | Status | Applies To |
|---|---|---|---|
| Section 122 (baseline) | 10% | Active (expires ~Jul 23, 2026) | Nearly all imports from all countries |
| HTS Base Rate | 0–20% | Permanent | Varies by product category |
| Section 232 (product-specific) | 25–50% | Active (if applicable) | Steel, aluminum, autos, copper |
| GSP (duty-free preference) | Suspended | Expired June 2019 — NOT restored | Was 0% on ~3,500 product categories |
Sources: USITC Harmonized Tariff Schedule; Tax Foundation Tariff Tracker; USTR India Trade Summary, March 2026.
Bottom line for most goods: Effective rate is your HTS base rate + 10% Section 122. For the majority of Indian consumer goods — textiles, leather, gems, processed foods — that puts you somewhere between 10% and 30%. No Section 301 surcharge is a meaningful advantage over China, but the GSP suspension means you're no longer getting the duty-free pass India used to enjoy on thousands of product lines.
The GSP Problem: Why India Lost Duty-Free Access
This is the thing most merchants sourcing from India miss. The Generalized System of Preferences (GSP) program used to give India preferential access on roughly 3,500 product categories — meaning zero duty on a wide range of goods. Textiles, leather goods, chemicals, certain machinery.
The Trump administration terminated India's GSP eligibility in June 2019, citing India's market access barriers. India had been the largest beneficiary of the GSP program, with about $6.4 billion in annual exports to the US covered under GSP at the time.
The Biden administration never restored it. The current Trump administration has not restored it either. As of March 2026, India's GSP status remains suspended — and there's no near-term restoration on the horizon.
What this means practically: products that were 0% duty from India before 2019 are now paying their full HTS base rate plus Section 122. If you were sourcing from India pre-2019, your cost structure has changed significantly even before the current tariff environment.
⚠ Watch for: US-India trade deal negotiations. The two governments have had ongoing talks about a bilateral trade deal (or mini-deal) for years. If any agreement restores GSP-like preferences, India becomes dramatically cheaper overnight. Check ustr.gov for current negotiation status.
Duty Rates by Product Category
India's major export categories to the US and what you're paying in March 2026:
| Product Category | HTS Base Rate | Section 122 | Effective Rate | Notes |
|---|---|---|---|---|
| Pharmaceutical finished goods | 0% | 10% | ~10% | Section 232 investigation ongoing |
| Diamonds (cut, polished) | 6.5% | 10% | ~16.5% | GSP previously gave 0% |
| Apparel (cotton) | 10–25% | 10% | 20–35% | High HTS base rates |
| Leather goods / footwear | 8–20% | 10% | 18–30% | GSP previously covered many lines |
| Home textiles / bedding | 5–15% | 10% | 15–25% | Significant India export category |
| Machinery / mechanical parts | 0–5% | 10% | 10–15% | Reasonable rate |
| Organic chemicals | 0–6% | 10% | 10–16% | Major India export to US |
| Processed food / spices | 0–8% | 10% | 10–18% | Varies widely by product |
| Steel and steel products | 0–5% | 10% | 50–60% (Section 232) | Section 232 applies regardless |
| Gems and jewelry | 5–7% | 10% | 15–17% | India is world's #1 diamond cutter |
HTS base rates are approximate. Your exact rate depends on the 10-digit HTS code for your specific product. Verify at hts.usitc.gov.
The Pharmaceutical Exception — For Now
India supplies roughly 40% of all generic drugs sold in the US. Most pharmaceutical finished goods (HTS Chapter 30) carry a 0% base rate. Add Section 122 and you're at 10% for now. But this may change.
The Trump administration launched a Section 232 national security investigation into pharmaceutical imports in early 2025. If that investigation results in Section 232 tariffs on pharma, India gets hit hard — it's the single largest supplier of US generics. As of March 2026 that investigation is ongoing, no tariffs have been announced. But it's worth watching closely if your business touches pharma supply chains.
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Try the Duty Calculator →India vs China vs Vietnam: Cost Comparison
Where India actually fits in the current tariff landscape:
Apparel (Cotton T-Shirts)
| Factor | China | India | Vietnam |
|---|---|---|---|
| HTS base rate (clothing) | ~12% | ~12% | ~12% |
| Section 301 (China only) | 7.5% | None | None |
| Section 122 (baseline) | 10% | 10% | 10% |
| Total effective duty | ~29.5% | ~22% | ~22% |
India and Vietnam are roughly equivalent on duty for apparel. Where India differentiates: labor costs. India's garment manufacturing wages are generally lower than Vietnam's, so for labor-intensive products, India's landed cost can end up cheaper even at the same tariff rate.
Diamonds and Gems
| Factor | China | India | Vietnam |
|---|---|---|---|
| HTS base rate (cut diamonds) | ~6.5% | ~6.5% | ~6.5% |
| Section 301 (China only) | 7.5% | None | None |
| Section 122 | 10% | 10% | 10% |
| Total effective duty | ~24% | ~16.5% | ~16.5% |
India dominates global diamond cutting (Surat alone handles ~90% of the world's cut diamonds). Vietnam is not a meaningful competitor here. India's advantage is structural — it's the only real source.
Furniture
| Factor | China | India | Vietnam |
|---|---|---|---|
| HTS base rate (furniture) | 0–5% | 0–5% | 0–5% |
| Section 301 (China only) | 25% | None | None |
| Section 122 | 10% | 10% | 10% |
| Total effective duty | ~35–40% | ~10–15% | ~10–15% |
For furniture, India and Vietnam are neck-and-neck on duty. Vietnam has more developed furniture manufacturing infrastructure (particularly in Ho Chi Minh City). India's advantage is in specific wood types (teak, sheesham) and handcrafted items where Indian artisanal labor creates a differentiated product.
How to Calculate Your Landed Cost from India
Same formula as any import: product cost + freight + insurance + duty + customs broker fee = landed cost. Here's a real example.
You're importing 200 units of leather bags from India. Each bag is $45 FOB. Air freight is $1,200. Insurance is $100.
| Line Item | Amount |
|---|---|
| Product cost (200 × $45) | $9,000 |
| Air freight | $1,200 |
| Insurance | $100 |
| CIF Value | $10,300 |
| HTS base rate (leather bags ~9%) | $927 |
| Section 122 (10%) | $1,030 |
| Total Duty | $1,957 |
| Customs broker (est.) | $250 |
| Total Landed Cost | $12,507 |
| Landed cost per unit | $62.54 |
Before GSP was suspended in 2019, leather bags from India had a 0% HTS duty rate under GSP. The same order today pays $927 more in base duty. That's what the GSP suspension costs you in concrete terms.
💡 CIF vs FOB matters. Duty is calculated on the CIF value — that includes your freight and insurance costs, not just the product price. Air freight is expensive, which inflates your dutiable value. If duty is a concern, optimizing your shipping method (sea vs air) has a multiplier effect on your duty bill.
Trade Risks to Watch in 2026
India's tariff situation could move in either direction this year. Here's what to monitor:
Upside: US-India Trade Deal
Talks between the US and India on a bilateral trade framework have been ongoing for years. Modi's visit to Washington in 2025 generated optimism but no signed deal. If the US and India reach even a limited trade agreement that restores GSP-style preferences, the effective duty rate on thousands of Indian products drops significantly. India is actively pursuing this — the US trade deficit with India was $58.2 billion in 2025, and India wants more market access.
Downside: Pharmaceutical Section 232
The ongoing Section 232 investigation into pharmaceutical imports is the biggest risk for India-sourcing merchants. If it results in tariffs on generic drugs and pharma ingredients, India's single largest US export category takes a major hit. Timing and scope are unknown as of March 2026 — but it's the thing to watch.
Downside: More Section 232 Expansion
Section 232 is increasingly being used as a broad trade tool beyond its original national security framing. Electronics, semiconductors, and other tech-adjacent goods have been discussed. If Section 232 expands into categories where India is a major supplier, rates could jump significantly regardless of any FTA progress.
⚠ The Section 122 cliff. The 10% baseline tariff expires around July 23, 2026. That affects every import from India (and everywhere else). Your cost model could change mid-year. Build that uncertainty into sourcing decisions you're making now.
Frequently Asked Questions
Sources
- US Trade Representative: India Trade Summary (2025 data)
- Tax Foundation: 2026 Trump Tariffs & Trade War by the Numbers (March 2026)
- US International Trade Commission: Harmonized Tariff Schedule
- US Customs and Border Protection: Importer Tips
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Calculate Your Duty Free →Disclaimer: This article is for informational purposes only and does not constitute legal, tax, or customs advice. Tariff rates change frequently. Always verify current rates with US Customs and Border Protection or a licensed customs broker before making sourcing or import decisions. Rates in this article are accurate as of March 27, 2026.