US-India Trade Tensions: High Tariffs and Non-Tariff Barriers Under Scrutiny

In its latest report, the United States has denounced India for maintaining high import tariffs on a broad range of products impacting American exporters. The 2026 National Trade Estimate Report identifies persistent regulatory challenges and non-tariff barriers as primary concerns in US-India trade relations.

Despite India's claims of adherence to WTO regulations, the report highlights disparities between bound and applied rates, creating uncertainty for U.S. stakeholders. High tariffs particularly affect agricultural goods, processed foods, and essential medicines, posing substantial trade barriers.

The report also points out India's inconsistent tariff announcements and complex customs protocols. Non-tariff barriers like import restrictions and domestic standards misaligned with international norms further exacerbate trade challenges, hindering a free and open digital economy.