New Delhi: The Ministry of Commerce and Industry on Saturday said the US has imposed an additional 10% tariff on imports from India under Section 301 of the US Trade Act, 1974, lower than the 12.5% duty proposed earlier, while nearly 45% of India’s exports to the US will remain outside its scope.
The clarification followed the United States Trade Representative’s (USTR) recent announcement of the final measures under Section 301, following an investigation into the acts, policies, and practices of 60 economies, including India, relating to the prohibition on imports of goods produced with forced labour.
The ministry said India remained closely engaged with the USTR throughout the investigation through detailed written submissions, in-person consultations and participation in public hearings.
It said these sustained efforts resulted in India being placed in the lower tier of additional tariffs under the final measures, giving Indian exports a relative advantage in key sectors compared with many other economies covered by the investigation.
According to the government, several major export categories, including generic pharmaceuticals, smartphones and certain other specified products, will continue to attract no additional duty.
Products already covered under Section 232 measures, including steel, aluminium and auto parts, are also excluded from the new 10% Section 301 duty, as Section 232 tariffs apply broadly to all countries with limited exceptions, according to an official statement.
The ministry said these exemptions mean that around 45% of India’s exports to the US remain outside the purview of the additional Section 301 tariff. The remaining 55% of exports will attract the additional 10% duty, although India’s overall tariff incidence remains lower than that of most other economies covered by the USTR investigation.
It added that the textile-specific mechanism referred to in the final measures has not yet been established or operationalised. India continues to engage with the United States on the issue as part of the ongoing negotiations for the proposed India-US Bilateral Trade Agreement.
The government reiterated its commitment to working with the US for the early conclusion of the India-US Bilateral Trade Agreement, as announced on February 2, 2026, and in accordance with the Joint Statement issued on February 7, 2026.
