12.5% to 10%: Why Trump admin imposed reduced tariff rate on India & what it means

The Trump administration reduced India's tariff rate from 12.5% to 10% under the Section 301 probe, effective July 24, 2026.

US Trade Representative Jamieson Greer announced revised tariffs on 60 economies, with a 10% rate applying to India and 16 other economies including Bangladesh, Pakistan, Canada, and the UK.

Section 301 allows the US to investigate imports made using 'forced labour' and impose tariffs; countries without legal bans on such imports, like China and Japan, face 12.5% tariffs.

Exemptions from the tariffs include raw materials, agricultural inputs not producible in adequate US quantities, and products that could trigger inflation or disrupt domestic supply chains.

Industrial inputs like specified plastic resins, metal products, medical supplies, and goods under Section 232 tariffs are also exempted.