India IEEPA Tariffs: 18% Rate Overview
India received an 18% IEEPA reciprocal tariff rate, taking effect April 5, 2025. While 18% is lower than some other major trading partners, India is a significant source of U.S. imports across several important categories — textiles, ready-made garments, pharmaceuticals, gems and jewelry, engineering goods, and chemicals.
For importers who sourced from India during the IEEPA period, the refund opportunity is proportional to the 18% rate applied to total dutiable import value.
India’s Export Profile to the United States
Pharmaceuticals and Chemicals: India is one of the world’s largest generic pharmaceutical exporters. The 18% IEEPA rate on pharmaceutical ingredients and finished drugs created an unusual situation, as drug prices are sensitive to input cost changes.
Textiles and Apparel: India is a major ready-made garment and textile manufacturer. Unlike Bangladesh and Vietnam, India’s 18% rate was more manageable for apparel brands, though still significant at scale.
Gems and Jewelry: India is the world’s largest diamond-cutting and polishing center. Gems and jewelry face additional HTS-specific considerations, and high unit values mean even moderate tariff rates generate substantial duties.
Engineering Goods and Machinery: India exports automotive components, industrial forgings, and machined parts to U.S. manufacturers.
Agricultural Products: Spices, basmati rice, and processed foods from India.
No FTA Complications
The United States does not have a free trade agreement with India. All Indian-origin entries during the IEEPA period that had 18% duties assessed are straightforwardly eligible for CAPE refunds without FTA qualification analysis.
Key HTS Categories
- Chapter 30: Pharmaceutical preparations
- Chapters 61–62: Apparel and clothing
- Chapter 71: Gems, jewelry, and precious metals
- Chapter 87: Auto parts and components
- Chapters 84–85: Industrial machinery and equipment
Calculating Your India Refund
At an 18% rate, a business importing $2 million from India during the IEEPA period has approximately $360,000 in refundable duties. While the per-dollar rate is lower than Vietnam or Bangladesh, India’s diverse export range means many U.S. importers have Indian-origin entries across multiple product categories.
Use the calculator above to estimate your total refund across all Indian-origin imports.