Quick take: The United States under President Donald Trump has implemented a wide range of tariffs in 2026, significantly changing the cost of imported goods. Rates vary by country and product category — affecting everything from everyday consumer items to business supplies. For Non-Resident Indians in the USA, these tariffs influence the price of Indian imports, the cost of running businesses, and household expenses. Here's the clear, country-wise breakdown.

1. Broad Section 301 Tariffs (Forced-Labor Related)

In July 2026, the US imposed new tariffs on imports from about 60 countries under Section 301, linked to forced-labor enforcement.

Tariff RateKey Countries
10%India, Canada, Mexico, United Kingdom, Bangladesh, Indonesia, Malaysia, Pakistan, Sri Lanka, Cambodia, and several others
12.5%China, Japan, South Korea, Australia, Brazil, Vietnam, Thailand, Singapore, and most other countries
Special treatmentEU and Taiwan face rates structured around 10%; some allies get adjusted rates

Note on India: India received the lower 10% rate after amending its foreign trade policy to prohibit imports made with forced labor. This gave India a relative advantage over competitors facing 12.5%.

2. China-Specific Tariffs

China continues to face higher overall tariffs due to multiple layers of duties (Section 301, national security measures, and earlier trade actions). Average effective tariffs on Chinese goods remain significantly elevated compared to other countries.

3. Sector-Specific & National Security Tariffs

  • Drones: Up to 100% on larger drones and those with thermal imaging (effective September 3, 2026); 25% on smaller drones. See our full Trump drone tariffs breakdown.
  • Steel, Aluminum & Derivatives: High rates (often 25-50%).
  • Automobiles and Parts: Significant additional duties.
  • Canada: Additional 50% tariffs on certain products imposed in August 2026.

Impact of These Tariffs on NRIs

1. Higher Cost of Goods from India

Many NRIs regularly import or purchase Indian products such as:

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  • Spices, packaged foods, and groceries
  • Clothing, textiles, and ethnic wear
  • Jewelry, handicrafts, and home décor
  • Ayurvedic and personal care products

The additional 10% tariff on most Indian goods has increased landed costs. Retailers and online sellers often pass these costs to consumers, making Indian products slightly more expensive in the US.

2. Effect on NRI-Owned Businesses

NRIs who run import-export businesses, retail stores, restaurants, or e-commerce operations face:

  • Higher input costs for goods sourced from India or other tariff-affected countries
  • Pressure on profit margins
  • Need to adjust pricing or find alternative suppliers

Businesses dealing in textiles, gems & jewelry, engineering goods, and chemicals have felt the impact more strongly.

3. Household Budget Pressure

Everyday items and specialty products from Asia have become costlier. Combined with other inflationary pressures — like record-high gas prices in 2026 — this affects discretionary spending for many Indian-American families.

4. Relative Advantage for India

Because India faces a 10% rate while several competing manufacturing countries face 12.5%, Indian exporters retain a modest competitive edge in the US market. This can benefit NRIs involved in India-US trade or those supporting Indian manufacturers.

5. Investment and Portfolio Considerations

NRIs with investments in companies heavily dependent on imports from China or other high-tariff countries may see margin pressures reflected in stock performance. Conversely, domestic US manufacturers and some Indian exporters could benefit. See our NRI Taxation India pillar for cross-border tax implications.

Practical Tips for NRIs in the Current Tariff Environment

  1. Compare total landed costs before importing goods from India or China.
  2. Explore US-based or lower-tariff country alternatives where possible.
  3. For businesses: Review supply chains and consider duty drawback or exemption programs if eligible.
  4. Monitor official USTR and CBP updates, as tariff rates and exemptions can change.
  5. Factor higher import costs into family budgeting for Indian groceries, clothing, and festive purchases.

Conclusion

The 2026 US tariff landscape is complex, with rates ranging from 10% to over 100% depending on country and product. India currently sits in the more favorable 10% category for most goods under the broad Section 301 measures, which provides some relief compared to higher rates faced by China and several other nations.

For NRIs, the main effects are higher prices on imported Indian and Asian goods and increased costs for import-dependent businesses. Staying informed and adapting purchasing and business strategies remains essential in this evolving trade environment.

Stay updated with NRI Globe for the latest on US tariffs, India-US trade, and practical guidance for the global Indian community.