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How U.S.–India Trade Policy Changes Can Affect Your Business’s Import Costs

U.S.–India trade announcements do not set one current tariff rate for every Indian import. Here’s how to check the measures that may apply to your shipment.
From TheFinanceBase Team6 min to read

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U.S.–India trade-policy changes can alter the duties due on a particular shipment, but there is no single current tariff rate for every product imported from India. The February 2026 framework announced an 18% U.S. reciprocal tariff rate for originating Indian goods; a later order ended specified IEEPA additional duties, and a separate 10% temporary surcharge had a stated end date of July 24, 2026. As of October 7, 2026, the official sources reviewed here do not establish that surcharge was extended. To estimate your costs, check the product’s classification, origin, customs value, and customs entry date against the tariff provisions then in force.

What changed in U.S.–India trade policy?

The 2026 announcements need to be read in date order. The February framework described intended terms, but later legal actions changed the status of certain duties. The figures below are not a product-specific tariff determination.

Date Policy action What it means for an importer
February 6, 2026 The U.S.–India joint statement announced a framework for an Interim Agreement. It said the United States would apply an 18% reciprocal tariff rate under Executive Order 14257 to originating Indian goods, naming products such as textiles and apparel, leather and footwear, plastics and rubber, organic chemicals, home décor, artisanal goods, and certain machinery. It also described contemplated removal of reciprocal tariffs on a wide range of goods, including generic pharmaceuticals, gems and diamonds, and aircraft parts, subject to successful conclusion of the Interim Agreement. Treat the 18% and the contemplated exceptions as framework terms, not as a universal current rate or automatically implemented exemptions. Read the joint statement.
February 9, 2026 A White House fact sheet described the announced plan to remove an additional 25% tariff on Indian imports and lower the reciprocal tariff from 25% to 18%, while saying the countries would implement the framework in coming weeks and continue negotiations. This was a dated account of the announcement, not proof that every planned change remained in effect later. Read the fact sheet.
February 20, 2026 Executive Order 14389 ended specified additional ad valorem duties imposed under listed IEEPA orders, including the April 2025 reciprocal-tariff order, directing that they no longer be collected as soon as practicable. The order says it does not affect other duties, including Section 232 or Section 301 duties, and does not affect the separate temporary surcharge proclamation. The February framework’s 18% figure should therefore not be presented as a blanket current rate. Read Executive Order 14389.
February 24–July 24, 2026 A separate proclamation set a 10% ad valorem import surcharge for 150 days beginning February 24, with listed exceptions. It stated that the surcharge would continue through 12:01 a.m. EDT on July 24 unless suspended, modified, or terminated earlier, or extended by an Act of Congress. The sources reviewed do not establish an extension beyond the stated end date. Do not assume the surcharge applies to an entry after that date based solely on an index listing the original proclamation. Read the proclamation; see also the USTR tariff-actions index.

The agreement’s status is a separate issue from the status of any duty. USTR’s 2026 trade policy report says the countries “will work towards finalizing the Interim Agreement with a view to concluding a mutually beneficial BTA.” The framework’s planned Indian tariff reductions and other market-access steps concern U.S. goods entering India; they are not U.S. import duties owed on Indian-origin goods. Read USTR’s 2026 Trade Policy Agenda and 2025 Annual Report.

How can a policy change reach your import costs?

A tariff announcement affects a business only when the applicable measure covers its goods and entry. The rate, any exceptions, and the amount due can depend on the product’s tariff classification, country of origin, customs value, and customs entry date. Other measures may also apply, so a country-level headline is not enough to calculate a shipment’s cost.

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Classification sets the tariff line

The U.S. Harmonized Tariff Schedule (HTS) assigns products to tariff classifications. A product’s exact characteristics can matter; a broad description such as “machinery” or “apparel” is not enough to confirm a rate or an exception. USITC publishes and maintains the HTS and provides an online tariff database, but USTR says U.S. Customs and Border Protection (CBP) is the authority that interprets the HTS and issues legally binding rulings or advice on import classification and treatment. Find the HTS resources and CBP guidance.

Origin is not the same as the seller’s location

A shipment routed through India, or sold by an Indian company, is not by itself proof that the goods qualify as Indian-origin under a particular measure. The joint statement says the countries will establish rules of origin so agreement benefits accrue predominantly to the United States and India. Confirm the applicable origin rule and keep supporting documentation for the product and measure.

Entry date determines which rules to check

The executive order and surcharge proclamation tie their effective dates to goods entered for consumption or withdrawn from warehouse for consumption. A purchase order date or vessel departure date is not necessarily the date that governs the duty. Check the legal provisions and applicable HTS revision for the customs entry date.

Other duties and exceptions can change the result

The end of the specified IEEPA duties did not end every U.S. import duty. Executive Order 14389 expressly preserves other duties, including Section 232 and Section 301 measures. The surcharge proclamation also listed exceptions and said its surcharge would not be added on top of Section 232 tariffs on the same portion of an import. Confirm whether a product-specific duty, exception, or rule affects the shipment rather than assuming measures simply stack.

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How to estimate a shipment’s duty exposure

  1. Describe and classify the product. Gather its composition, function, construction, and other details needed to identify the HTS line. Start with the current HTS and U.S. tariff database. If classification or treatment is uncertain, consult CBP; it is the agency authorized to issue binding classification rulings or advice.
  2. Confirm origin and documentation. Establish where the goods qualify as originating under the rules relevant to the measure you are evaluating. Do not infer origin solely from the supplier’s address or shipping route.
  3. Use the customs entry date. Identify the expected entry for consumption or warehouse withdrawal date, then check the measures and HTS provisions in effect for that date. Recheck if a shipment is delayed across a policy effective date.
  4. Check each potentially applicable measure. Review the ordinary HTS duty, any additional tariffs or temporary measures, and relevant exceptions. Use current official tariff provisions and legal notices; an earlier announcement or a continuing index entry is not a substitute for checking the rule on the entry date.
  5. Build scenarios from verified inputs. Apply the verified duty treatment to the applicable customs value, then compare the result with supplier pricing, freight, lead time, and other import charges. If a measure is uncertain, model clearly labeled alternatives instead of presenting one unsupported rate as certain.

For a sourcing decision involving more than one feasible supplier or country, compare the same product specification and classification across the options. Include origin eligibility and documentation, entry-date measures, customs value and duty, supplier price, shipping cost, lead time, and continuity risk. A lower tariff alone does not establish the lowest landed cost, and the official sources do not quantify how much of a tariff a supplier will pass through to a buyer.

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What the bilateral trade figures do—and do not—show

USTR’s 2026 India country summary reports that U.S. goods imports from India totaled $103.8 billion in 2025, while U.S. goods exports to India totaled $45.4 billion that year. These figures show the scale and direction of goods trade; they are not a typical importer’s tariff bill, a savings estimate, or evidence of the duty treatment for any particular product. See USTR’s India profile.

USTR Ambassador Jamieson Greer described the February 6 framework as “unlocking one of the largest economies in the world for American workers and producers, lowering tariffs for all U.S. industrial goods and a wide array of agricultural products.” That was his characterization of announced framework terms and planned access for U.S. goods in India—not a statement about U.S. import duties on Indian goods. Read Greer’s statement.

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