India Pushes Ahead with US Trade Talks After 10% Tariff Imposed

On July 25, India said it would keep engaging with the United States after Washington announced a 10 % ad valorem duty on Indian imports under Section 301 of the US Trade Act. The duty excludes generic pharmaceuticals, smartphones, steel, aluminium and auto parts, covering roughly 45 % of India’s exports to the United States. The remaining 55 % will face the additional 10 % levy, lower than the 12.5 % rate initially proposed on June 2, 2026.

45% of India’s exports to US out of 10% section 301 tariffs: Govt India-US Trade Talks Helped Secure Lower Tier of Additional Tariffs: Government Reuters45% of India's US Exports Exempted from Additional Tariffs

The United States launched a Section 301 review of 60 economies, including India, over forced-labour concerns. The final measures announced on July 23 placed India in a “lower tier” of tariffs. India and the United States have been negotiating a bilateral trade agreement since early 2025 to resolve market-access issues and expand cooperation in digital trade, investment and tariff reductions.

India-US Trade Talks Helped Secure Lower Tier of Additional Tariffs: Government US India Bilateral Trade: What Comes After New Tariffs? Reuters

• Exports exempt: ~45 % of shipments, including generic medicines, smartphones, steel, aluminium and auto parts.

45% of India's US Exports Exempted from Additional Tariffs

• Exports subject to duty: ~55 % of shipments will incur the 10 % tariff.

45% of India's US Exports Exempted from Additional Tariffs

• Relative positioning: India’s rate is lower than the 12.5 % proposed for many other economies and lower than tariffs on 38 countries such as China, Russia and Brazil.

45% of India’s exports to US out of 10% section 301 tariffs: Govt

The ministry noted that products already covered by Section 232 duties—steel, aluminium and auto parts—are not subject to the new 10 % levy.

India-US Trade Talks Helped Secure Lower Tier of Additional Tariffs: Government

The United States Trade Representative framed the duty as a response to forced-labour concerns, saying the final measures reflect a calibrated approach after consultations with Indian officials.

45% of India’s exports to US out of 10% section 301 tariffs: Govt

Exempting nearly half of Indian exports eases immediate cost pressures on pharmaceuticals and consumer electronics, helping maintain competitiveness in the U.S. market. Ongoing dialogue on a broader bilateral agreement is seen as essential for reducing uncertainty for exporters.

India-US Trade Talks Helped Secure Lower Tier of Additional Tariffs: Government

• “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

India-US Trade Talks Helped Secure Lower Tier of Additional Tariffs: Government

• “India continues to engage with the US on this matter as part of the ongoing negotiations for the India-US Bilateral Trade Agreement” — The ministry

India-US Trade Talks Helped Secure Lower Tier of Additional Tariffs: Government

Both governments indicated that further discussions will continue in the coming weeks, with particular attention to sector-specific mechanisms such as textiles.

45% of India’s exports to US out of 10% section 301 tariffs: Govt