US Tariffs on Indian Imports 2026 — GSP Status, Duty Rates & Trade Opportunities

April 9, 2026 · 12 min read

India is one of the fastest-growing economies in the world and an increasingly important US trading partner, yet the trade relationship lacks the preferential frameworks that govern US trade with Mexico, Canada, or many other partners. With no free trade agreement, a revoked GSP program, and the new Section 122 surcharge, Indian imports face a challenging tariff landscape in 2026.

This guide covers the current duty rates, the GSP situation, anti-dumping duties on steel and other products, key import categories, and the outlook for US-India trade negotiations.

The Tariff Landscape: No Preferential Treatment

Unlike most major US trading partners, India has no preferential tariff arrangement with the United States. There is no bilateral free trade agreement, no regional trade agreement like USMCA, and since 2019, no GSP benefits. Indian goods enter the US at MFN (most-favored-nation) rates -- the baseline tariff rates that apply to all World Trade Organization members.

Product Category	Typical MFN Rate	+ Section 122	Effective Total
Pharmaceuticals (generic drugs)	0-6.5%	Up to 15%	15-21.5%
Textiles and apparel	10-32%	Up to 15%	25-47%
Gems and jewelry	0-6.5%	Up to 15%	15-21.5%
Chemicals and dyes	0-10%	Up to 15%	15-25%
Iron and steel products	0-6%	Up to 15%	15-21% (+ possible AD/CVD)
Machinery and auto parts	0-6%	Up to 15%	15-21%
Agricultural products (spices, rice, tea)	0-20%	Up to 15%	15-35%
Seafood (shrimp)	0-15%	Up to 15%	15-30% (+ possible AD)

Compared to China: While India lacks preferential access, Indian imports also do not face Section 301 tariffs (which add 7.5-25% to Chinese goods). For many product categories, the total tariff burden on Indian imports is lower than on Chinese equivalents, especially in sectors where China faces the full Section 301 rate. Use Tariff Check to compare specific HTS codes.

GSP Program: Revoked and Still Not Restored

The Generalized System of Preferences (GSP) was a US trade program that provided duty-free treatment to thousands of products from eligible developing countries. India was the largest beneficiary of GSP, with approximately $6.3 billion in duty-free imports annually before revocation.

Timeline of GSP and India:

1976: GSP program created; India designated as beneficiary
June 2019: Trump administration revokes India's GSP benefits, citing India's failure to provide equitable and reasonable market access to US goods and services
December 2020: GSP program expires for all countries (Congress fails to reauthorize)
2021-2025: Multiple Congressional efforts to renew GSP stall; India's reinstatement faces additional hurdles
April 2026: GSP remains unauthorized; India's benefits remain revoked

The loss of GSP has increased costs for importers of Indian goods across thousands of product categories. Products that previously entered duty-free now pay MFN rates that can range from 2% to 20%+ depending on the product. For high-volume importers, this represents millions of dollars in additional annual costs.

GSP restoration unlikely in the near term: Even if Congress reauthorizes the GSP program (which faces political headwinds), India's reinstatement would require resolution of the market access issues that led to its removal in 2019. These include India's high tariffs on US goods, restrictions on US dairy and agricultural products, data localization requirements, and price controls on medical devices. Negotiations have not produced a breakthrough.

Anti-Dumping Duties on Indian Products

India faces a substantial number of anti-dumping duty (ADD) and countervailing duty (CVD) orders in the United States, particularly on steel products. These duties can dramatically increase the cost of importing specific products from India.

Product	Type	Typical Rate Range	Key HTS Chapters
Hot-rolled steel flat products	ADD/CVD	12-40%+	Chapter 72
Cold-rolled steel flat products	ADD/CVD	Varies widely	Chapter 72
Corrosion-resistant steel	ADD/CVD	Varies	Chapter 72
Stainless steel flanges	ADD/CVD	18-145%	Chapter 73
Forged steel fittings	ADD/CVD	Varies	Chapter 73
Certain warmwater shrimp	ADD	2-10%	Chapter 3, 16
Polyethylene terephthalate (PET) film	ADD/CVD	Varies	Chapter 39
Glycine	ADD	Varies	Chapter 29

Steel is the most significant area of AD/CVD exposure. India is a major steel producer, and the combination of anti-dumping duties, Section 232 tariffs (25% on steel), and the Section 122 surcharge can push total effective rates on Indian steel imports above 80% for some products. Browse Chapter 72 (iron and steel) for specific HTS codes.

Key Import Categories

Pharmaceuticals

India is often called the "pharmacy of the world," supplying approximately 40% of generic drugs consumed in the United States. Pharmaceutical imports represent one of the most important categories of US-India trade. Most finished pharmaceutical products have relatively low MFN rates (0-6.5%), and generic drugs play a critical role in keeping US healthcare costs manageable.

The Section 122 surcharge on pharmaceutical imports has drawn concern from healthcare advocates who argue it could increase drug prices. The pharmaceutical industry is lobbying for exemptions, but none have been granted as of April 2026.

Textiles and Apparel

India is a major textile and apparel exporter, known for cotton fabrics, traditional textiles, and garment manufacturing. However, textile MFN rates are among the highest in the US tariff schedule (10-32%), and the loss of GSP benefits has made Indian textiles less competitive compared to alternatives from Vietnam and Bangladesh.

India's strengths remain in premium and specialty textiles (handloom, organic cotton, embroidered goods) where quality differentiation justifies higher landed costs.

Gems and Jewelry

India is the world's largest diamond cutting and polishing center, processing roughly 90% of the world's diamonds by volume. Cut and polished diamonds generally face 0% MFN rates, though the Section 122 surcharge now applies. Gold and silver jewelry face higher MFN rates (5.5-6.5%). India also exports significant volumes of colored gemstones and costume jewelry.

IT Services and Digital Trade

While IT services are not subject to traditional import tariffs (they are services, not goods), India's role as the world's largest IT services exporter to the US is relevant context. US imports of Indian IT and business services exceed $40 billion annually. Trade negotiations between the US and India increasingly focus on digital trade rules, data flows, and services market access alongside traditional tariff issues.

Agricultural Products

India exports specialty agricultural products to the US including spices (turmeric, cumin, black pepper), basmati rice, tea, and cashews. MFN rates vary widely by product. Indian spices are particularly competitive due to India's dominant global position in spice production. Browse Chapter 9 (spices) for specific HTS codes and rates.

Trade Negotiations Status

The US and India have been in discussions about deepening their trade relationship for years, but progress has been slow. Several frameworks are in play as of 2026:

US-India Trade Policy Forum (TPF): The primary bilateral trade dialogue, which has met several times since being revived in 2021. Discussions cover market access, intellectual property, digital trade, and agricultural barriers.
Mini trade deal: Both sides have discussed a limited trade package that would address specific irritants (India reducing tariffs on certain US goods in exchange for GSP restoration), but a deal has not been reached.
Indo-Pacific Economic Framework (IPEF): India participates in IPEF but opted out of the trade pillar, limiting the framework's impact on tariff issues.
Bilateral Investment Treaty (BIT): Negotiations for a comprehensive BIT have been stalled for years over disagreements on investor protections and dispute resolution.

Strategic alignment but trade friction: Despite growing strategic alignment (security cooperation, technology partnerships, and shared concerns about China), the US and India have significant trade disagreements. India maintains high tariffs on many US goods (e.g., 100% on motorcycles, 60% on automobiles, 50% on certain agricultural products). The US wants India to open its markets further before offering preferential access.

India as a China+1 Alternative

India is increasingly positioned as an alternative manufacturing destination to China, though its advantages and limitations differ from Vietnam or Mexico.

India's advantages:

Large, young, English-speaking workforce
Strong pharmaceutical and chemical manufacturing capabilities
Growing electronics manufacturing under the "Make in India" initiative (Apple suppliers like Foxconn and Tata are expanding production)
Robust IT and engineering services ecosystem
No Section 301 tariffs (unlike China)
Democratic governance and rule of law

India's challenges:

No free trade agreement with the US (higher tariffs than USMCA countries)
Infrastructure gaps (ports, roads, power reliability)
Complex regulatory and bureaucratic environment
Anti-dumping duties on key export categories (steel)
Limited manufacturing scale in many sectors compared to China
Higher logistics costs and longer shipping times than Vietnam

What Importers Should Do Now

Evaluate India for supply chain diversification. If you currently source from China, India may offer competitive total landed costs for pharmaceuticals, chemicals, specialty textiles, and certain manufactured goods even without preferential tariff treatment.
Check for AD/CVD exposure. Before sourcing steel or other products with anti-dumping histories from India, verify current duty rates with your customs broker.
File IEEPA refund claims. If you paid the 26% IEEPA tariff on Indian imports between April 2025 and February 2026, file refund claims with CBP for the excess over MFN rates.
Monitor GSP developments. If Congress reauthorizes GSP, there may be an opportunity for reduced duties on Indian goods -- but India's reinstatement is not guaranteed.
Plan for the Section 122 expiration. The 15% surcharge has a 150-day limit. Factor both scenarios into your cost models.
Classify accurately. Indian product classifications can be tricky, particularly for mixed textiles, processed agricultural products, and chemical compounds. Learn how to read HTS codes and verify your classifications.

Look up your rate: Use Tariff Check to search by HTS code and see exact duty rates for Indian imports. Browse by chapter to find the right product classification.

Frequently Asked Questions

Does the US have a free trade agreement with India?

No. The US and India do not have a free trade agreement. Indian imports enter the US at MFN (most-favored-nation) rates, which are the standard tariff rates applied to WTO members. India was also removed from the Generalized System of Preferences (GSP) program in 2019, eliminating the duty-free treatment that had previously applied to thousands of Indian products.

Has India's GSP status been restored?

No. India's GSP benefits were revoked by the Trump administration in June 2019, and they have not been restored as of April 2026. The GSP program itself expired for all countries in December 2020 and has not been reauthorized by Congress. If and when GSP is renewed, India's reinstatement would require separate negotiation on market access issues that led to its removal.

What tariff rates do Indian imports face in 2026?

Indian imports face MFN duty rates (varying by product, typically 0-25%) plus the Section 122 surcharge of up to 15%. Some products also face anti-dumping or countervailing duties. Without GSP or a free trade agreement, Indian goods receive no preferential tariff treatment. The IEEPA tariffs of 26% that had been imposed were struck down by the Supreme Court in February 2026.

What Indian products face anti-dumping duties in the US?

India faces numerous anti-dumping and countervailing duty orders, particularly on steel products (hot-rolled, cold-rolled, corrosion-resistant, stainless steel), shrimp, certain chemical products, and forged steel fittings. Steel duties can be substantial, sometimes exceeding 100% for specific exporters. These duties stack on top of MFN rates and the Section 122 surcharge.

Is India a good alternative to China for manufacturing sourcing?

India is increasingly positioned as a China+1 alternative, particularly for pharmaceuticals, IT services, textiles, and chemicals. However, India faces challenges: no free trade agreement means higher tariff rates than USMCA countries, infrastructure gaps compared to China and Vietnam, complex regulatory environment, and limited manufacturing scale in many sectors. India's advantages include a large English-speaking workforce, growing manufacturing capacity, and strong pharmaceutical and IT capabilities.

Related Country Guides

China Import Tariffs Guide 2026 -- The primary competitor India is positioned to replace
Vietnam Import Tariffs Guide 2026 -- Another China+1 alternative
Mexico Import Tariffs Guide 2026 -- USMCA benefits and nearshoring
Canada Import Tariffs Guide 2026 -- USMCA partner with duty-free benefits

Disclaimer: This article provides a general overview of US tariffs on Indian imports. Tariff rates, anti-dumping duties, and trade policies are complex and product-specific. Consult a licensed customs broker or trade attorney for guidance specific to your situation. Data reflects conditions as of April 2026.