🇮🇳 Current Rate
India faces a 10% baseline reciprocal tariff on most goods exported to the US as of May 2026, down from the 26% rate announced in April. Negotiations on a broader trade deal are ongoing.
India has emerged as one of the most closely watched US trading partners in 2026. With tariffs on Chinese goods still running at 30–145% depending on the product, thousands of importers and Amazon FBA sellers are looking at India as a serious alternative sourcing hub. Understanding exactly what you'll pay in US duties on Indian imports — and how those rates have shifted over the past year — is now critical to building an accurate landed cost model.
This guide covers the current US tariff structure for Indian goods, which product categories are most affected, how to calculate what you'll actually owe, and whether India still makes sense as part of your China+1 sourcing strategy.
In early April 2026, the White House announced sweeping "reciprocal tariffs" on nearly every US trading partner using IEEPA (International Emergency Economic Powers Act) authority. India was assigned a 26% reciprocal tariff rate based on a formula comparing India's average tariff on US goods versus the US average applied to Indian goods.
Within days, the administration announced a 90-day pause, dropping the reciprocal rate down to the baseline 10% level for most partners including India. That 10% rate remains in effect as of late May 2026. On top of that baseline, standard MFN (Most Favored Nation) duties from the Harmonized Tariff Schedule still apply — meaning the total rate is 10% reciprocal + whatever the HTS MFN rate is for your specific product.
⚠️ Rate Uncertainty
The 90-day pause expires in July 2026. If no trade deal is reached, the reciprocal rate on Indian goods could jump back to 26%. Budget conservatively and monitor negotiations before placing large orders.
Unlike China, India has not been subjected to additional Section 301 tariffs. This is a meaningful structural advantage — most Chinese goods face the 10% universal baseline PLUS 20–125% in Section 301 duties, whereas Indian goods face only the baseline plus the standard MFN rate.
The effective rate on Indian imports combines the 10% IEEPA baseline + MFN HTS duty. Here's how that plays out across India's main export categories to the US:
| Product Category | HTS Chapter | MFN Rate | Total (2026) |
|---|---|---|---|
| Cotton apparel & textiles | 52, 61–62 | 7–32% | 17–42% |
| Gems & jewelry (diamonds) | 71 | 0–6.5% | 10–16.5% |
| Pharmaceuticals (generics) | 30 | 0% | 10% |
| Leather goods & footwear | 42, 64 | 3.5–48% | 13.5–58% |
| Machinery & electronics | 84–85 | 0–4% | 10–14% |
| Iron & steel products | 72–73 | 0–9% | 10–19% |
| Plastic & rubber goods | 39–40 | 2–6% | 12–16% |
| Organic chemicals | 29 | 0–6% | 10–16% |
| Handmade carpets & rugs | 57 | 0–4.4% | 10–14.4% |
| Processed food & spices | 09, 21 | 2–10% | 12–20% |
Apparel and leather goods carry the highest combined rates because the MFN duty schedules for those chapters were already elevated before the reciprocal tariffs were added. Pharmaceuticals and machinery are more favorable since baseline MFN rates are near zero for those categories.
The tariff rate is just one component of what you actually pay. Your landed cost from India includes duties, freight, customs broker fees, and insurance. Here's the formula:
For a practical example: you're importing $10,000 worth of cotton apparel (HTS 6109.10) from Tirupur, India. The MFN rate is 16.5% and the reciprocal baseline adds 10%, giving a total of 26.5%.
Use the USTariffCalc calculator to run these numbers for your specific HTS code and shipment value — rates vary significantly by chapter and by whether your goods qualify for any exclusions.
Even at 26.5% total (if the 26% reciprocal rate is reinstated), Indian goods are dramatically cheaper to import than comparable Chinese goods in tariff-sensitive categories. Here's a direct comparison for the same apparel shipment:
| Origin | MFN Rate | IEEPA / Section 301 | Total Duty |
|---|---|---|---|
| India (current) | 16.5% | 10% IEEPA | 26.5% |
| India (if pause ends) | 16.5% | 26% IEEPA | 42.5% |
| China (apparel) | 16.5% | 10% IEEPA + 20% Sec. 301 | 46.5% |
| Vietnam | 16.5% | 10% IEEPA | 26.5% |
| Mexico (USMCA) | 0% | 0% | 0% |
At the current rate, India and Vietnam are roughly equivalent on duties for most product categories. Mexico under USMCA remains unbeatable at zero duty for qualifying goods — but sourcing capacity and unit economics from Mexico are very different, particularly for labor-intensive products like textiles.
The real advantage India offers over Vietnam is scale and product breadth. India has mature manufacturing clusters for textiles (Tirupur, Surat), gems and jewelry (Surat), leather (Agra, Chennai), pharmaceuticals (Hyderabad), and engineering goods (Pune, Coimbatore). Vietnam's strength is narrower — primarily electronics assembly and basic garments.
If you're selling to Indian customers or considering re-export strategies, India's tariff structure matters too. India runs some of the highest import duty rates among major economies:
This asymmetry — India charging 40–80% on US goods while paying 10–26% to send goods to the US — is exactly what the Trump administration used to justify the 26% reciprocal rate. US-India trade negotiations in 2026 are partly focused on getting India to reduce these duties in exchange for a lower reciprocal tariff.
📋 GSP Status
India lost its Generalized System of Preferences (GSP) status in 2019 when the Trump administration first revoked it. GSP had previously allowed certain Indian goods to enter the US duty-free. Reinstating GSP could be part of a bilateral trade deal — but it's not in effect today.
For Amazon FBA sellers using India as a sourcing alternative, the tariff math is more favorable than China but the operational picture is more complex. Here's what to factor in:
The difference between two adjacent HTS codes can mean a 10-point swing in duty rate. For Indian goods, this is especially important in textiles (cotton vs. synthetic blends have very different rates) and leather goods (leather vs. PU/faux leather). Use the correct HTS code before estimating your costs.
The 10% IEEPA rate may revert to 26% in July 2026. Build your FBA pricing model at the higher rate and treat any savings as upside, not baseline. Use the FBA profit calculator to stress-test your margins at both rate scenarios.
Ocean freight from India (primarily Mumbai, Chennai, JNPT) to US East Coast averages 22–28 days vs. 28–35 days from Chinese ports to the West Coast. Air freight from India costs roughly the same as from China — $3.50–5.50/kg. Factor in longer supplier qualification timelines: Indian factories typically take more iterations to hit Western quality standards for consumer goods.
Indian manufacturers — particularly textiles and handicrafts — often have lower MOQs than Chinese factories for custom products but slower sample turnaround (3–6 weeks vs. 1–2 weeks from China). Plan your product development timeline accordingly.
For a full comparison of landed costs by sourcing country — including Vietnam, Mexico, and Bangladesh — see our landed cost comparison guide.
Calculate Your Exact India Import Duty
Enter your HTS code and product value to get the full 2026 duty breakdown — including the IEEPA reciprocal rate.
Calculate Now →As of May 2026, Indian goods face the standard MFN duty from the HTS schedule plus a 10% IEEPA reciprocal baseline tariff. The 26% reciprocal rate announced in April 2026 was paused for 90 days. Total effective rates range from about 10% (pharmaceuticals, machinery) to 42%+ (apparel, footwear) depending on product category.
No. Section 301 tariffs are specific to China and a handful of countries under active trade investigations. India has not been subject to Section 301 duties. This is a key advantage: Chinese goods face MFN + IEEPA + Section 301, while Indian goods face only MFN + IEEPA.
Not currently. India's GSP (Generalized System of Preferences) benefits were revoked in 2019 and have not been reinstated. There are discussions about including GSP restoration in a potential US-India trade deal, but no timeline is confirmed.
If no trade agreement is reached by July 2026, the 26% reciprocal tariff is expected to go back into effect. Monitor official announcements from the USTR and USITC. For FBA sellers, it's prudent to model margins at both 10% and 26% scenarios.
On tariffs alone, India and Vietnam are at the same rate (both at 10% IEEPA + MFN). The choice comes down to product category, factory relationships, and lead times. India has deeper capacity in textiles, jewelry, and pharmaceuticals. Vietnam leads in electronics assembly and certain garments. Both are significantly cheaper than China for tariff purposes.