The temporary global tariff imposed in February under Section 122 lapsed after its 150-day limit. Most Indian exports return to normal duties, but a new Section 301 tariff puts India in a 10% category, helped by a ban on goods made with forced labour.
In February, after the Supreme Court struck down most of its tariffs, the US imposed a temporary 10% global tariff under Section 122 of its trade law, a provision that allows such charges for no more than 150 days. Today, July 24, those 150 days ran out. The Global Trade Research Initiative estimated that about 92% of India’s roughly $87 billion of goods exports to the US would return to normal MFN duties. That relief lasted a matter of hours on paper, because a new tariff, under a different law, took effect the same day.
From Section 122 to Section 301
Section 301 lets the US impose tariffs after investigating a country’s trade practices. The administration launched those investigations in February and has now concluded them, sorting trading partners into categories. India landed in the lower 10% group. The proposed rate had been 12.5%, and US officials said it was reduced after India decided to ban imports of goods made with forced labour.
Tariff law turned out to have more than one door. When one closed, another was already open.
Where that leaves exporters
For a garment maker in Tiruppur or a jeweller in Surat, a 10% rate is far better than the 50% of last August, and roughly in line with what competitors face. But steel, aluminium and auto components remain under separate national-security tariffs with no relief. And the speed of change is its own cost. In under a year, the rate on many Indian goods has gone from 25% to 50% to 18% to 10% under one law and now 10% under another. Exporters price contracts months ahead. A rule that changes every season is a barrier in itself, even when the number on it falls.
Sources: USTR Section 301 determinations, July 2026; Global Trade Research Initiative analysis.
- The Section 122 temporary tariff expired on July 24 after its 150-day legal limit.
- About 92% of India’s $87 billion of goods exports to the US returned to normal MFN duties.
- New Section 301 tariffs took effect the same day. India was placed in a 10% category.
- Steel, aluminium and auto parts still face higher national-security tariffs.
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