45% Of Indian exports to US exempt from new 10% tariffs, says Commerce Ministry
New Delhi: About 45% of India’s exports to the United States will not face the new 10% additional tariff imposed by Washington under Section 301, the Ministry of Commerce and Industry said. Key products like generic pharmaceuticals, smartphones, steel, aluminium and auto parts have been kept out of the duty. The ministry said this was secured after months of negotiations with the US Trade Representative, which placed India in a “lower tariff tier” of 10% instead of the 12.5% proposed in June.
The remaining 55% of Indian exports to the US will attract the additional 10% duty, on top of existing most-favoured-nation tariffs. Officials noted that even with the levy, India’s tariff incidence is comparatively lower than that of most other countries covered in the investigation. India also recently amended its Foreign Trade Policy to ban imports made using forced labour, a move the US acknowledged.
The ministry said talks on an India-US Bilateral Trade Agreement are continuing, including discussions on sector-specific issues like textiles. It added that the government remains committed to an early conclusion of the deal, while also working to protect the interests of Indian exporters affected by the new measures.
