India’s engagements with the US Trade Representative have helped secure lower tariffs on Indian goods, the Commerce Ministry said on Saturday, adding that the two countries are seeking an “early conclusion” of the planned bilateral trade agreement.
The statement came after an additional 10% tariff was imposed on goods imported from India on Friday, under Section 301 of the US Trade Act of 1974. “The US Trade Representative has imposed an additional 10% ad valorem duty on imports from India. This is a reduction from the 12.5% tariff initially proposed on June 2, 2026,” a statement from the ministry said.
The Center cooperated closely with the USTR “through detailed written submissions and in-person consultations, including participation in public hearings,” the department said.
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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 comparative advantage to Indian exports in key sectors,” he added.
The additional tariffs were imposed as part of the US Trade Representative’s final action following investigations into the actions, policies and practices of 60 economies, including India, in relation to imposing and enforcing bans on the import of goods produced through forced labor.
A large share of India’s exports to the US, which currently does not impose any surcharge, such as generic medicines, smartphones and other specified products, remain outside the scope of the 10% surcharge, it added. “Furthermore, products already covered under Article 232 measures, including steel, aluminum and auto parts, are not subject to the additional 10% duty,” the ministry said.
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Section 232 duties apply 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 scope of the 10% additional duty.
For the remaining 55%, India’s customs duty rate is relatively lower than most of the other economies covered, the statement said.
“The mechanism on textiles referred to in the final measures is not yet up and running. India continues to work with the US on this issue as part of the ongoing negotiations on the India-US Bilateral Trade Agreement,” the statement said, referring to the potential tariff quota on textiles and apparel (TRQ) for Bangladesh, Cambodia, Indonesia and Malaysia, all of which use cotton and fibers of US origin.
The statement concluded by reiterating the government’s commitment to the India-US Bilateral Trade Agreement, “as announced on February 2, 2026 and in accordance with the Joint Statement issued on February 7, 2026.”
