India to keep engaging with US on trade deal after new tariff measures
The ministry said 45% of exports avoid the duty, while India stays in a lower tariff tier after USTR findings on forced-labor imports.
- On Saturday, India announced that about 45% of its exports to the United States remain outside the scope of a new 10% tariff Washington imposed Friday over allegations of forced labour.
- Following detailed engagement with the USTR, India secured a tariff rate lower than the 12.5% initially proposed in June after sustained consultations and written submissions.
- The Ministry stated that a "substantial share" of exports, including generic pharmaceuticals and smartphones, remain outside the additional 10% duty, though 55% of exports will attract the tariff.
- India faces a disadvantage as it was excluded from a new "textile mechanism" providing tariff-rate quotas to Bangladesh, Cambodia, Indonesia, and Malaysia, which "is yet to be established and operationalised."
- Amid these trade measures, the Indian government "remains committed" to working with the United States toward the early conclusion of the Bilateral Trade Agreement to resolve long-standing market access issues.
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India states that trade talks with the United States have ensured that the country has been placed in the “bottom category” regarding the Trump administration’s latest import tariffs. As a result, the country retains an advantage for key export products.
The privilege applies in particular to the Generics, Smartphones, Steel, Aluminium, and Auto Spare Parts.
US Tariff: India gets 10 per cent, below China's 12.5
India has secured a relatively favourable position in the latest round of United States trade measures, with Washington imposing a 10 per cent tariff on most Indian exports under Section 301 of the US Trade Act of 1974, while key competitors such as China and Vietnam have been placed in the higher 12.5 per cent tariff bracket. The development comes as a significant relief for Indian exporters, particularly as the United States remains India’s la…
US puts India in lower 10% tariff tier; $87 billion exports exempt from extra duty
The United States has imposed an additional 10 per cent duty on Indian goods under Section 301 while placing India in the lower tariff bracket. The Centre said exemptions will shield a large share of exports, even as textile exporters flagged concerns during ongoing BTA talks.
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