The US Section 301 Measures have placed India in the lower tariff tier with a final additional 10% ad valorem duty on certain imports into the United States. The decision was announced by the United States Trade Representative (USTR) on 23 July 2026 under Section 301 of the U.S. Trade Act, 1974, following an investigation covering the acts, policies and practices of 60 economies, including India, related to the prohibition and enforcement of restrictions on goods produced with forced labour. The Government of India said the final duty is lower than the 12.5% additional duty proposed on 2 June 2026, following sustained engagement with the USTR throughout the investigation.
According to the Government, India remained actively engaged with the USTR during the investigation by submitting detailed written responses and participating in in-person consultations, including public hearings. These efforts resulted in India being placed in the lower tier of additional tariffs under the final US Section 301 Measures. The Government stated that this provides a relative advantage to Indian exports in several key sectors compared with many other economies covered by the investigation. The announcement was issued by PIB Delhi on 25 July 2026.
US Section 301 Measures: Products Covered and Exemptions
A significant portion of India’s exports to the United States will remain outside the scope of the additional duty. The Government said that exports currently attracting zero additional duties, including generic pharmaceuticals, smartphones and certain other specified products, continue to be exempt from the additional 10% tariff under the final US Section 301 Measures. These exemptions ensure that several important export categories remain unaffected by the latest decision.
Products already covered under Section 232 measures, including steel, aluminium and auto parts, are also excluded from the additional 10% duty. The Government noted that Section 232 duties are broadly applicable to all countries with limited exceptions. Because of these exemptions, it is estimated that around 45% of India’s exports to the United States remain outside the purview of the additional 10% Section 301 duty. The remaining 55% of exports will attract the additional 10% duty, with India’s overall tariff incidence remaining comparatively lower than that faced by most other economies included in the USTR investigation.
The Government also said that the textile-specific mechanism referred to in the final US Section 301 Measures has not yet been established or operationalised. India continues to engage with the United States on this issue as part of the ongoing negotiations for the India-U.S. Bilateral Trade Agreement. No further operational details regarding this textile mechanism have been announced at this stage.
The Government reaffirmed its commitment to working with the United States for the early conclusion of the India-U.S. Bilateral Trade Agreement. It said the negotiations are continuing in line with the announcement made on 2 February 2026 and the Joint Statement issued on 7 February 2026. The latest US Section 301 Measures represent the final outcome of the USTR investigation announced on 23 July 2026, with India receiving a reduced additional tariff of 10% instead of the previously proposed 12.5%, while nearly 45% of India’s exports to the United States continue to remain outside the scope of the additional duty due to existing exemptions.
Source: Press Information Bureau (PIB), Government of India
