India placed in lower 10 pc US tariff bracket; reaffirms commitment to BTA

NEW DELHI, July 25: The government on Saturday said the US has placed India in the lower 10 per cent tariff bracket under its Section 301 measures on alleged forced labour concerns and reiterated its commitment to working with Washington for the early conclusion of the bilateral trade agreement.
The United States Trade Representative (USTR) on July 23 announced the final measures under Section 301 of the US Trade Act, 1974 under which it imposed 10 per cent additional import duty on Indian goods from July 24.
The measures follow USTR’s investigation into the acts, policies and practices of 60 economies, including India, relating to the imposition and enforcement of prohibitions on the importation of goods produced with forced labour.
The US had initially proposed 12.5 per cent tariffs on India. These 10 per cent duties replaced the earlier 10 per cent temporary tariffs imposed for 150 days from February 24.
Commenting on the US move, the commerce ministry in a statement said India remained closely engaged with USTR throughout the investigation via detailed written submissions and in-person consultations, including participation in public hearings.
“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 commerce ministry said in a statement.
It said a substantial share of India’s exports to the US (USD 87.31 billion in 2025-26), which currently attract zero additional duties, such as generic pharmaceuticals, smartphones and certain other specified products, continue to remain outside the scope of the additional 10 per cent duty. Further, products already covered under Section 232 measures, including steel, aluminium and auto parts, are not subject to the additional 10 per cent duty. (PTI)