US Tariff Policy and India
Section 301 to Reciprocal Tariffs
The United States has periodically deployed tariff instruments against India. Under Section 301 of the Trade Act of 1974, the US can investigate and retaliate against foreign trade practices deemed unfair. India was removed from the Generalised System of Preferences (GSP) in June 2019 following disputes over market access for US agricultural and medical device exports. More recently, the Trump administration's Reciprocal Tariff framework (2025) imposed broad-based tariffs aligned to matching trade partner barriers, with India's tariff levels — among the highest of major economies — making it a significant target.
- India was removed from the US GSP programme in 2019; the GSP provides duty-free access for developing country exports to the US.
- The US-India trade deficit (US perspective) was approximately $45 billion in 2023-24, a persistent US grievance in bilateral trade negotiations.
- India's average applied tariff rate (approximately 12–18% across categories) is significantly higher than the US average (approximately 3.4%), providing the stated basis for reciprocal tariff calculations.
- A bilateral trade deal framework (aimed at $500 billion in trade by 2030) has been under negotiation, with interim agreements on specific sectors under discussion.
- US tariff actions have impacted Indian exports of steel, aluminium, pharmaceuticals, IT services (through H-1B visa restrictions), and gems and jewellery.
● Tracked since February 03, 2026 · last seen May 23, 2026 · updates as the daily brief publishes