Government continues trade negotiations with Washington as textiles remain a key area of concern
India has said that around 45% of its exports to the United States will remain unaffected by the new 10% tariff imposed under Washington’s Section 301 trade measures, offering partial relief to exporters despite fresh duties on several manufactured goods.
The Ministry of Commerce and Industry said the United States has placed India in the lower 10% tariff category under the latest measures linked to concerns over forced labour in global supply chains. As a result, products accounting for nearly 45% of India’s exports to the US are exempt from the additional levy. These include major export categories such as generic pharmaceuticals, smartphones, steel, aluminium and auto parts.
The remaining 55% of Indian exports will attract the new 10% tariff, which will be charged in addition to existing US most-favoured-nation duties. The government said it is continuing discussions with Washington to minimise the impact on affected sectors and to conclude the proposed India-US Bilateral Trade Agreement at the earliest.
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Textiles and apparel are expected to be among the sectors facing the greatest challenge
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Industry representatives have warned that Indian exporters could lose competitiveness as some Asian countries have secured preferential access or tariff-rate quotas for shipments using US-origin cotton and fibre
The Commerce Ministry said negotiations are under way to secure a favourable arrangement for India’s textile exports and other sector-specific issues. Officials maintained that dialogue with the United States remains active despite the latest tariff measures.
The United States remains India’s largest trading partner, making the outcome of the ongoing trade negotiations significant for exporters seeking greater market access and long-term certainty. The government reiterated its commitment to strengthening bilateral trade ties while protecting the interests of Indian industry.
