MUMBAI, July 25 - India announced on Saturday that it will continue engaging with the United States to pursue a bilateral trade agreement, following Washington's rollout of new tariffs that include a 10% duty on imports from India. The United States unveiled fresh measures imposing duties from 10% to 12.5% on goods from some 60 trading partners on the grounds that those countries had not adequately prevented imports produced with forced labour.
India's commerce ministry said in a statement that the 10% rate applied to India is lower than the 12.5% figure that had been proposed in June. The ministry also noted specific product exemptions from the levy, listing generic pharmaceuticals, smartphones, steel, aluminium and auto parts as categories excluded from the new duty.
According to the commerce ministry, approximately 45% of India's exports to the United States will fall outside the scope of the new tariff because of those product exemptions. The ministry said the remaining 55% of export shipments will face the additional 10% duty. The fresh levy will be applied on top of the standard U.S. most-favoured-nation tariffs.
The statement said India remains engaged with the United States and will press ahead with negotiations on sector-specific matters - including textiles - as part of efforts to conclude the bilateral trade pact. The two countries have been in trade negotiations since last year with the stated aim of strengthening economic ties and resolving long-standing market access issues.
Market observers point to potential competitive disadvantages for certain export sectors under the new tariff framework. In particular, textile and apparel exporters from India are likely to face tougher competition relative to several Asian rivals under the adjusted duty regime.
The commerce ministry reiterated the government's commitment to work toward an early conclusion of the India-U.S. Bilateral Trade Agreement and to continue discussions on outstanding sectoral issues. The ministry's comments underscore a dual-track approach of continuing diplomacy while managing the immediate commercial implications of the tariff action.
Contextual note: The new U.S. duties are part of a broader set of measures affecting 60 trading partners, with applied rates ranging from 10% to 12.5% based on allegations regarding forced-labour-related imports.