India’s engagements with the US Trade Representative (USTR) helped secure a lower tariff for Indian goods, the commerce ministry said on Saturday, adding that both nations were seeking an “early conclusion” of the planned bilateral trade agreement.
Details
The statement followed the imposition of 10% additional tariffs on goods from India on Friday, under Section 301 of the US Trade Act, 1974. “USTR has imposed an additional 10% ad valorem duty on imports from India. This is a reduction from the 12.5% duty initially proposed on 2nd June 2026,” said a statement from the ministry.
The ministry said the Centre engaged closely with the USTR’s office “through detailed written submissions and in-person consultations, including participation in public hearings.”
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“As a result of these sustained efforts, India has been placed in the lower tier of additional tariffs under the final measures, providing a relative advantage to Indian exports in key sectors,” it added.
The additional tariff was imposed as part of the USTR’s final action following probes into the acts, policies and practices of 60 economies, including India, relating to imposition and enforcement of bans on the import of goods produced through forced labour.
A substantial share of India’s exports to the US, which currently attract no additional duties, such as generic pharmaceuticals, smartphones and other specified products, remain outside the scope of the additional 10% duty, it said. “Further, products already covered under Section 232 measures, including steel, aluminium and auto parts, are not subject to the additional 10% duty,” said the ministry.
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Section 232 duties are applicable broadly to all countries with limited exceptions.
On account of these exemptions, an estimated 45% of India’s exports to the US remain outside the purview of the additional 10% duty.
For the remaining 55%, India’s tariff incidence is comparatively lower than that for most other economies covered, said the statement.
“The textile specific mechanism referenced in the final measures is yet to be established and operationalised. India continues to engage with the US on this matter as part of the ongoing negotiations for the India-US Bilateral Trade Agreement,” the statement said, referring to the probable textile and apparel tariff-rate quota (TRQ) for Bangladesh, Cambodia, Indonesia, and Malaysia, all of which use US-origin cotton and fiber.
The statement concluded by reiterating the government’s commitment towards the India-US Bilateral Trade Agreement,“as announced on 2nd February 2026 and in accordance with the Joint Statement issued on 7th February 2026.”
