United States Imposes 10% Duty on Indian Exports

The Federal government of the United States imposed a 10% additional ad valorem duty on Indian exports on July 23, 2026. The measure follows a Section 301 investigation by the Office of the United States Trade Representative into 60 economies regarding goods allegedly produced using forced labor.

The final tariff rate is lower than the 12.5% duty originally proposed in June. The Government of India attributes this reduction to its active participation in public hearings and consultations. Roughly 45% of Indian exports are exempt from these duties, including smartphones, steel, aluminum, auto parts, and generic pharmaceuticals.

The Ministry of Commerce and Industry of India views the lower tariff tier as a competitive advantage, though some reports suggest Indian textile and apparel exporters may now face disadvantages against other Asian competitors. In response to the measures, the Indian government stated it remains committed to negotiating the early conclusion of the India-U.S. Bilateral Trade Agreement to bolster economic cooperation.