Washington: The Centre on Saturday said the United States has placed India in the lower 10 per cent tariff bracket under its Section 301 measures on alleged forced labour concerns, calling it a relative advantage for Indian exports. The government also reaffirmed its commitment to working with Washington for the early conclusion of the India-US Bilateral Trade Agreement (BTA).
The United States Trade Representative (USTR) on July 23 announced the final measures under Section 301 of the US Trade Act, 1974, imposing an additional 10 per cent import duty on Indian goods from July 24. The US had initially proposed a 12.5 per cent tariff on India.
Responding to the decision, the Commerce Ministry said India remained engaged with the USTR throughout the investigation through written submissions, consultations and public hearings.
“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 ministry said.
The ministry stated that exports such as generic pharmaceuticals, smartphones and certain other specified products, part of India’s USD 87.31 billion exports to the US in 2025-26, will remain outside the additional duty. Products already covered under Section 232 measures, including steel, aluminium and auto parts, are also exempt.
“On account of these exemptions, an estimated 45 per cent of India’s exports to the US remain outside the purview of the additional 10 per cent Section 301 duty,” the ministry said.
“The government remains committed to working with the US towards the early conclusion of the India-US Bilateral Trade Agreement, as announced on 2nd February 2026 and in accordance with the Joint Statement issued on 7th February 2026,” the ministry added.
The Commerce Ministry said discussions with the US on textile-related concerns will continue as part of the ongoing BTA negotiations, while India and the US continue negotiations on the proposed bilateral trade agreement.
