Story perspectives

India Wins Exemptions for 45% of U.S. Exports

7/27/2026

Summary

Story summary

On July 26, 2026 India secured exemptions for about 45% of its U.S. exports, covering generic medicines, smartphones, steel, aluminium and automotive parts.
The United States imposed a 10% ad valorem duty on Indian imports on July 23, 2026, after lowering the originally proposed 12.5% rate from June 2, 2026.
India’s Ministry of Commerce said it will keep negotiating the India-U.S. Bilateral Trade Agreement and dismissed U.S. forced-labor allegations as unsupported.

History

Historical Context

In 2005 President Bush and Prime Minister Manmohan Singh launched the Trade Policy Forum, formalizing U.S.–India trade talks after earlier liberalisation steps. Bilateral goods trade then rose to $119.42 billion in 2021-22, up from modest levels in the early 1990s when U.S. FDI in India grew from $11 million to $344 million by 2004. This historic expansion underpins current negotiations on sector-specific concessions and WTO dispute-settlement expectations.

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Story summary

On July 26, 2026 India secured exemptions for about 45% of its U.S. exports, covering generic medicines, smartphones, steel, aluminium and automotive parts.
The United States imposed a 10% ad valorem duty on Indian imports on July 23, 2026, after lowering the originally proposed 12.5% rate from June 2, 2026.
India’s Ministry of Commerce said it will keep negotiating the India-U.S. Bilateral Trade Agreement and dismissed U.S. forced-labor allegations as unsupported.

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