India has said it is continuing discussions with the United States to achieve an early conclusion of the proposed India-US Bilateral Trade Agreement, even after Washington imposed an additional 10% tariff on certain imports from India.
In a statement issued on Saturday, the Ministry of Commerce and Industry said sustained engagement with the Office of the United States Trade Representative (USTR) helped bring down the proposed duty from 12.5% to 10%, giving Indian exports a relative advantage over several other economies covered under the latest measures.
The ministry said, “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.”
India secured lower tariff after consultations with USTR
According to the ministry, the government actively engaged with the USTR during the review process through written submissions, in-person consultations and participation in public hearings.
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It stated, “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.”
The additional duty forms part of the USTR’s final action after investigations into the policies and practices of 60 economies, including India, concerning restrictions related to goods produced through forced labour.
Nearly half of India’s exports remain unaffected
The government highlighted that a significant portion of India’s exports to the US will not be impacted by the additional 10% duty.
Products such as generic pharmaceuticals, smartphones and several other specified items remain outside the scope of the new tariff. The ministry also clarified, “Further, products already covered under Section 232 measures, including steel, aluminium and auto parts, are not subject to the additional 10% duty.”
Based on these exemptions, around 45% of India’s exports to the United States remain outside the purview of the additional tariff, while the remaining 55% face a comparatively lower tariff burden than many other economies included in the USTR action.
Textile mechanism still under discussion
The ministry noted that the textile-specific mechanism mentioned in the final US measures has not yet been established or implemented.
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It said, “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 proposed mechanism relates to a possible textile and apparel tariff-rate quota (TRQ) involving Bangladesh, Cambodia, Indonesia and Malaysia, which use US-origin cotton and fibre.
Reiterating its position, the government said it remains committed to concluding the India-US Bilateral Trade Agreement, in line with the announcements made on February 2, 2026, and the Joint Statement issued on February 7, 2026.
FAQS:
Why did the US impose a 10% tariff on imports from India?
The additional 10% tariff is part of the USTR’s final action under Section 301 following investigations into forced labour-related trade practices.
Which Indian exports are exempt from the new 10% US tariff?
Generic pharmaceuticals, smartphones, certain specified products, and goods already covered under Section 232, such as steel, aluminium and auto parts, remain exempt.
