US tariff regime on Indian goods shifts to 10% Section 301 levy plus MFN duty
US policy has moved through reciprocal and Russia-oil-linked tariff proposals toward a 10% India-specific Section 301 tariff. Smartphones, medicines and energy products remain exempt, while steel, aluminium and auto components face separate sectoral duties.
What happened
India-US Trade · Timeline of US tariff actions on Indian exports, with the current Section 301 levy at 10% plus MFN duty. Steel, aluminium and auto components
Key facts
- 10% India-specific Section 301 tariff from July 24, 2026
- 50% steel and aluminium duties
- 25% auto-components duty
What changed
Timeline of US tariff actions on Indian exports, with the current Section 301 levy at 10% plus MFN duty. Steel, aluminium and auto components face sectoral duties, while smartphones, medicines and energy products are exempt.
Why this matters
Reprice and diversify India-sourced covered imports as the 10% Section 301 levy raises landed costs, while protecting exempt smartphone, medicine and energy-category sourcing plans.
What to watch
- Official Section 301 notice language, effective dates, exclusions, product-level HTS codes, and customs valuation guidance.
- Any change to India-specific rates or interaction rules between the 10% levy, MFN duty, and steel, aluminium, or auto-sector tariffs.
- US Customs enforcement actions involving transshipment, origin claims, or tariff-evasion investigations tied to Indian supply chains.
- Indian government retaliation, exporter subsidies, or bilateral negotiations that create exemptions or offsetting costs.
- Retail CPI and category-level pricing in metal-intensive durable goods, auto aftermarket, and imported home categories.