US Finalizes Section 301 Tariffs: India Secures Lower 10% Duty Tier
LW Desk
India's leather, footwear and textile exporters are expected to benefit after the United States placed India in the lower 10% tariff tier under the final Section 301 measures of the U.S. Trade Act, 1974, improving the country's competitive position in the U.S. market.
The Office of the United States Trade Representative (USTR) has imposed an additional 10% import duty on selected goods from India instead of the 12.5% proposed earlier. The reduction came after the Indian government actively engaged with U.S. authorities throughout the investigation.
For Indian exporters, particularly in the leather, footwear and textile sectors, the lower 10% tariff provides a competitive advantage. With China and Vietnam facing a higher 12.5% tariff, Indian exporters could strengthen their position in the U.S. market and benefit from buyers seeking to diversify sourcing. However, product quality, compliance and reliable supply chains will remain key to winning export orders.
According to the government, nearly 45% of India's exports to the United States will remain outside the scope of the additional 10% duty. The remaining 55% of exports will attract the additional 10% tariff.
Although the United States has referred to a textile-specific mechanism in its final measures, the framework has not yet been established or implemented. This development will be closely watched by India's textile, leather and footwear exporters, as the sector remains heavily dependent on the U.S. market.
India and the United States continue discussions on the proposed India–U.S. Bilateral Trade Agreement (BTA), which is expected to address several outstanding trade issues, including those affecting the textile sector. Industry stakeholders will be looking for greater clarity on the textile mechanism and any future implications for leather and footwear exports.
The Government reiterated its commitment to working with the United States for the early conclusion of the bilateral trade agreement, aiming to strengthen bilateral trade and improve market access for Indian exporters.
