US final Section 301 measures: India placed in lower tariff tier at 10%
The US Trade Representative on 23 July 2026 announced final measures under Section 301 of the US Trade Act, 1974, following its forced-labour investigation of 60 economies, placing India in the lower tier with an additional 10% ad valorem duty, down from the 12.5% proposed on 2 June 2026.
Summary
India's Commerce Ministry said about 45% of India's exports to the US remain outside the additional 10% duty: products such as generic pharmaceuticals and smartphones stay exempt, and goods already under Section 232 measures (steel, aluminium, auto parts) are not covered. The remaining 55% of exports will attract the 10% duty, where India's tariff incidence is lower than for most other economies investigated. The textile-specific mechanism mentioned in the measures is yet to be set up, and India is pursuing the issue in the India–US Bilateral Trade Agreement negotiations.
Key facts
- Announced
- 23 July 2026, by USTR
- Law
- Section 301, US Trade Act, 1974
- Investigation
- Forced-labour import prohibitions – 60 economies
- India's duty
- Additional 10% ad valorem (proposed 12.5% on 2 June 2026)
- Outside duty
- ~45% of India's US exports (e.g. generic pharma, smartphones; Section 232 goods)
- Covered
- ~55% of exports
Practice MCQs 3 questions
Under the final US Section 301 measures announced on 23 July 2026, what additional duty was imposed on imports from India?
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Correct answer: A — 10%
USTR imposed an additional 10% ad valorem duty on Indian imports, down from 12.5% proposed on 2 June 2026.
The US Section 301 investigation concluded in July 2026 related to which issue?
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Correct answer: C — Prohibitions on importing goods made with forced labour
The investigation covered 60 economies' acts, policies and practices on prohibiting imports of goods produced with forced labour.
Consider the following statements regarding the final US Section 301 measures (July 2026) as they apply to India: 1. About 45% of India's exports to the US remain outside the additional 10% duty. 2. Steel, aluminium and auto parts covered under Section 232 are also charged the additional 10% duty. 3. Generic pharmaceuticals and smartphones continue to remain outside its scope. Which of the statements given above are correct?
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Correct answer: B — 1 and 3 only
Statements 1 and 3 are correct. Statement 2 is wrong: products already under Section 232 measures are not subject to the additional 10% duty.