50%, then 18%, then 10%: the rollercoaster of US tariffs on India

For Indian exporters, the last 14 months have been a lesson in how fast trade rules can change. Here's every turn, and where things stand now.

2025: from 10% to 50%

• 2 Apr 2025The US announces a 26% tariff on India. Within a week the "reciprocal" part is paused and a 10% baseline applies.
• 7 Aug 2025A 25% tariff on Indian goods takes effect.
• 27 Aug 2025Another 25% is added as a penalty for India buying Russian oil. Total: 50% on goods including gems and jewellery, garments, footwear, furniture, shrimp and chemicals.

The hit was real. India's goods exports to the US were about $86.5 billion a year, and the Global Trade Research Initiative (GTRI) warned they could fall towards $50 billion. Surat's diamond units reported shutdowns, and the rupee fell past 89 to the dollar at the time.

Some of India's biggest exports were spared throughout: medicines, smartphones and petroleum products were exempt from the reciprocal tariffs.

2026: deal, court, and a new legal route

• 2 Feb 2026An interim trade deal. The US cuts the tariff to 18% and drops the Russia-oil penalty. India commits to stop buying Russian crude, lower its own tariffs on US goods, and buy more American products.
• 20 Feb 2026The US Supreme Court strikes down tariffs imposed under the emergency powers law (IEEPA) that the reciprocal tariffs relied on.
• 24 Feb 2026The US replaces them with a temporary 10% global levy under Section 122 of the Trade Act, which can last at most 150 days. GTRI estimated India's average effective tariff at about 13.4%, counting sector duties.
• Late Jul 2026As Section 122 expires, the US imposes a 10% Section 301 duty on 17 economies including India, following an investigation into forced-labour import rules. India's government estimates it covers about 55% of exports to the US.

Who's still hurting

Labour-intensive sectors: textiles and garments, gems and jewellery, leather, engineering goods and chemicals now pay normal US duties plus 10%. Steel and aluminium still face 50% under separate national-security tariffs, and certain auto components 25%. In February the US also put a 126% duty on Indian solar imports.

The next threat

On 18 September 2026, President Trump signed a sanctions law directing tariffs of up to 100% on the five biggest buyers of Russian oil and gas. India committed to stop buying Russian crude under the February deal; which five countries will be named is not yet known. Three weeks later, the US agreed to buy Russian diesel itself. Read that story here.