Tariffs, costs & compliance compared — so you can make the right sourcing call.
| Factor | 🇮🇳 India | 🇨🇳 China |
|---|---|---|
| US Trade Rank | #9 | #1 |
| Annual US Imports | $87B | $427B |
| Trade Agreement | ✓ GSP (suspended) | No FTA |
| Avg Duty Rate | 5.2% average MFN (GSP suspended) | 19.3% (incl. Section 301) |
| Section 301 Surcharge | ✓ None | ⚠ Applies · Lists 1–4A: 7.5%–25% on most |
| Section 232 (Steel/Alum) | ⚠ 25% steel, 10% aluminum Sectio | ⚠ 25% on steel, 10% on aluminum |
| Compliance Complexity | ● Medium Complexity | ⚠ Very High Complexity |
| Ocean Transit to US | 22–40 days (ocean) | 14–30 days (ocean) |
Trade Agreement: GSP suspended since 2019
MFN Status: MFN (GSP suspended)
Transit to US: 22–40 days (ocean) · 6–9 days (air)
Main Ports: Nhava Sheva (Mumbai), Mundra, Chennai, Kolkata
Longer ocean transit than East/Southeast Asia. Air freight cost-effective for high-value goods.
GSP suspension increased costs ~$300M/year. Pharmaceutical misclassification risk high. Jewelry antidumping orders active.
Full India Profile →Trade Agreement: No FTA
MFN Status: Normal Trade Relations (NTR)
Transit to US: 14–30 days (ocean) · 5–8 days (air)
Main Ports: Shanghai, Shenzhen, Ningbo, Guangzhou
High-frequency direct service to all major US ports. Volume keeps per-unit freight competitive.
Section 301 additional duties of 7.5%–25% apply to virtually all product categories. UFLPA rebuttable presumption applies to Xinjiang goods.
Full China Profile →Based on $50,000 FOB product value. Duty rate reflects typical electronics treatment. Freight is estimated ocean FCL. Actual costs vary by HTS code, Incoterms, carrier, and shipment size.
| Cost Component | 🇮🇳 India | 🇨🇳 China |
|---|---|---|
| FOB Product Value | $50,000 | $50,000 |
| Customs Duties (0% FTA) | Free ($0) | $12,500 |
| Est. Ocean Freight | $3,000 | $4,000 |
| MPF + HMF (US Fees) | $236 | $236 |
| Total Estimated Landed Cost | $53,236 | $66,736 |
That's a 25–20% cost difference. At scale (e.g., 12 shipments/year), that's ~$162,000/year. Run your actual product for precise numbers.
Your HTS code, shipment size, and Incoterms make a big difference. Get a precise cost breakdown for India vs China in under 60 seconds.
India GSP benefits revoked in 2019. Pharmaceutical imports require FDA registration. Jewelry subject to anti-dumping investigations.
UFLPA forced-labor screening required for Xinjiang-origin goods. Importer certifications may apply.
Accurate country-of-origin marking (19 CFR Part 134), proper HTS classification, CBP entry filing, and applicable agency certifications (FDA, USDA, EPA, CPSC depending on product). Work with a licensed customs broker to confirm requirements for your specific goods.
The right sourcing decision depends on your product category, HTS classification, shipment volume, and tolerance for compliance complexity. Here's the key decision logic:
India benefits from the GSP (suspended) trade agreement, potentially eliminating duties entirely on qualifying goods. China has no comparable FTA — full MFN rates apply.
Goods from China face Section 301 additional duties of Lists 1–4A: 7.5%–25% on most goods. India is not subject to Section 301 — typically 10–25 percentage points cheaper for most categories.
India is generally cheaper for most US imports because it is not subject to Section 301 surcharges. China faces additional duties of Lists 1–4A: 7.5%–25% on most goods. Use the landed cost calculator to model your specific product.
India has a clear advantage: it benefits from GSP (suspended), which can eliminate or reduce duties on qualifying goods. China has no FTA with the US — importers pay the full MFN (Most Favored Nation) duty rate.
India is NOT subject to Section 301 tariffs. China is subject to Section 301 tariffs: Lists 1–4A: 7.5%–25% on most goods. For steel and aluminum: India faces Section 232 steel/aluminum duties: 25% steel, 10% aluminum Section 232 duties apply. China faces Section 232 steel/aluminum duties: 25% on steel, 10% on aluminum imports from China.
For electronics, India is the better choice. China faces Section 301 surcharges that significantly increase electronics import costs. India has no Section 301 exposure, so most electronics benefit from 0% MFN rates under the Information Technology Agreement.
India: India GSP benefits revoked in 2019. Pharmaceutical imports require FDA registration. Jewelry subject to anti-dumping investigations. China: UFLPA forced-labor screening required for Xinjiang-origin goods. Importer certifications may apply. Both origins require accurate country-of-origin marking (19 CFR Part 134) and proper HTS classification. Consult a licensed customs broker for origin-specific requirements.
Tariff comparisons sourced from USITC HTS Schedule and USTR Section 301 lists as of 2026-04-07. Sample landed cost figures are illustrative estimates only — actual costs depend on HTS classification, Incoterms, carrier rates, and current trade policy. Section 301 product lists, trade agreement rules of origin, and duty rates change frequently. Verify all rates with a licensed customs broker before making sourcing decisions. AI-assisted analysis — not legal or customs advice.