Investing.com — India said on Saturday that nearly half of its exports to the United States would avoid the latest round of additional U.S. tariffs, after trade negotiations helped the country secure a lower tariff category under President Donald Trump’s trade framework. <\/p>\n
The Ministry of Commerce and Industry said in a dated statement on Saturday that products accounting for about 45% of India’s exports to the U.S. \u2014 including generic medicines, smartphones, steel, aluminium and auto parts \u2014 remain exempt from the additional 10% levy announced by Washington last week. <\/p>\n
The exemptions are expected to provide a competitive advantage to Indian exporters at a time when businesses are grappling with rising trade barriers and uncertainty over future U.S. tariff policy. New Delhi said it is continuing discussions with Washington to reach an early conclusion on a broader bilateral trade agreement. <\/p>\n
The remaining 55% of Indian exports will be subject to the extra 10% duty, although the ministry noted that India’s tariff rates remain lower than those applied to many other economies covered by the U.S. measures. <\/p>\n
Trade ties between the two countries have been under negotiation since last year. A preliminary pact reached in February envisaged an 18% tariff on Indian goods, but subsequent legal developments in the United States, including a Supreme Court ruling that invalidated Trump’s reciprocal tariff framework, altered the trade landscape. <\/p>\n
The latest announcement also comes amid concerns over potential U.S. tariffs on generic medicines, a move that has weighed on Indian pharmaceutical companies, for whom the United States is the largest export market. <\/p>\n
Earlier this month, India rejected suggestions that it could face steeper tariffs over labour-related concerns, arguing that the U.S. had not provided evidence that the country lacked adequate safeguards against forced labour. <\/p>\n
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