U.S. Tariffs on Imports from India: What Changed in 2026
U.S. tariffs on imports from India changed significantly on February 7, 2026, following two announcements from the White House that removed a sanctions-based duty and introduced a new reciprocal tariff.
Below is a clear breakdown of what has changed and what importers should watch closely.
1) 25% IEEPA Tariff on Indian Goods Officially Eliminated
As of 12:01 a.m. EST on February 7, 2026, the U.S. has fully removed the 25% additional tariff that had been applied to Indian-origin goods.
What changed:
- The 25% duty was imposed under the International Emergency Economic Powers Act (IEEPA) due to India’s prior involvement in importing Russian oil.
- This sanctions-based tariff no longer applies to Indian goods entered for consumption—or withdrawn from bonded warehouses—on or after February 7, 2026.
- Refunds may be available for duties already paid, subject to standard U.S. Customs and Border Protection procedures.
Why this matters:
This is a full revocation, not a suspension. Importers should reassess landed cost calculations, pending entries, and potential refund opportunities.
2) New 18% Reciprocal Tariff Introduced Under Interim U.S.–India Trade Framework
At the same time, the U.S. and India announced an Interim Trade Agreement Framework, intended to serve as a pathway toward a future Bilateral Trade Agreement (BTA).
Under this framework, the U.S. will apply a new 18% reciprocal tariff on select Indian-origin products.
Product categories currently affected:
- Textiles and apparel
- Leather goods and footwear
- Plastics and rubber products
- Organic chemicals
- Home décor, artisanal goods, and selected machinery
Important clarification:
- These tariffs are not sanctions-based.
- They are authorized under a separate Executive Order focused on addressing trade imbalances.
- The scope is product-specific, not country-wide.
Potential exemptions:
Once the Interim Agreement is fully implemented, certain products may be excluded, including:
- Generic pharmaceuticals
- Diamonds and gemstones
- Aircraft and aviation-related parts
Key Takeaways for Importers
- ✅ The 25% IEEPA tariff has been completely removed as of February 7, 2026.
- ⚠️ A new 18% reciprocal tariff may apply, depending on product classification.
- 📦 Product-level review is critical—not all Indian goods are affected.
- 💰 Refund opportunities may exist for previously paid IEEPA duties.
How These Tariff Changes Affect Importers and Supply Chains
For U.S. importers, the removal of the 25% IEEPA tariff reduces compliance risk tied to sanctions enforcement, but it does not eliminate duty exposure altogether. The newly introduced 18% reciprocal tariff applies selectively, meaning importers must rely heavily on accurate HTS classification rather than country of origin alone.
Companies with complex sourcing, especially in textiles, chemicals, and consumer goods, should review supplier declarations and confirm whether products fall within the reciprocal tariff scope. Misclassification could result in unexpected duty assessments, penalties, or post-entry corrections.
Importers should also monitor further guidance from U.S. Customs and Border Protection, as exclusions and product carve-outs may expand once the interim framework advances toward a full bilateral agreement. For related updates, see our coverage on recent U.S. tariff policy changes affecting global imports.
What You Should Do Next
Importers should:
- Review HTS classifications for Indian-origin products
- Confirm whether shipments fall under the new reciprocal tariff scope
- Evaluate refund eligibility for past entries
- Monitor future guidance as the Interim Agreement evolves
If you have questions about how these changes affect your shipments or duty exposure, feel free to reach out to your customs or trade compliance team.
