Blurb: US lowers tariff on Indian goods to 10%, nearly half of India’s exports escape the new duty.
New Delhi
India has secured a lower level of additional tariffs under the United States’ final Section 301 measures after months of sustained engagement with the Office of the United States Trade Representative (USTR), the government said on Saturday.
The USTR announced the final measures on July 23 following its investigation into the policies and practices of 60 economies, including India, related to the import of goods allegedly produced using forced labour. Under the final decision, India will face an additional 10 per cent ad valorem duty on exports to the US, down from the 12.5 per cent duty proposed in June.
The Ministry of Commerce and Industry said India actively participated in the investigation through detailed written submissions, in-person consultations and public hearings. These efforts helped the country secure placement in the lower tier of additional tariffs, offering a competitive edge over several other economies.
The government also pointed out that a substantial portion of India’s exports will remain unaffected. Generic pharmaceuticals, smartphones and several specified products continue to be exempt from the new duty. Products already covered under Section 232 measures, including steel, aluminium and auto parts, are also outside the scope of the additional tariff.
Officials estimate that nearly 45 per cent of India’s exports to the United States remain exempt from the Section 301 duty. The Centre said it will continue working with the US administration for the early conclusion of the proposed India-US Bilateral Trade Agreement (BTA), aimed at deepening economic and trade cooperation.
The Government of India remained closely engaged with USTR throughout the investigation… India has been placed in the lower tier of additional tariffs, providing a relative advantage to Indian exports in key sectors, the Ministry of Commerce and Industry said. It also reiterated its commitment to concluding the India-US Bilateral Trade Agreement at the earliest.