{"id":1312163,"date":"2026-07-26T12:09:53","date_gmt":"2026-07-26T06:39:53","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1312163"},"modified":"2026-07-26T12:10:08","modified_gmt":"2026-07-26T06:40:08","slug":"45-indian-exports-get-relief-as-us-reduces-tariff-to-10","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/45-indian-exports-get-relief-as-us-reduces-tariff-to-10\/","title":{"rendered":"45% Indian Exports Get Relief As US Reduces Tariff To 10%"},"content":{"rendered":"\n<p><\/p>\n\n\n\n<p>The United States has reduced the additional tariff on Indian imports under its Section 301 measures from the initially proposed <strong>12.5% to 10%<\/strong>, providing partial relief to Indian exporters. The Ministry of Commerce and Industry said the revised tariff structure exempts nearly <strong>45% of India&#8217;s exports to the US<\/strong>, reducing the overall impact on several key sectors while trade negotiations between the two countries continue. <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"727\" height=\"422\" src=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/07\/images-14-1.jpeg\" alt=\"\" class=\"wp-image-1312170\" srcset=\"https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/07\/images-14-1.jpeg 727w, https:\/\/trak.in\/stories\/wp-content\/uploads\/2026\/07\/images-14-1-300x174.jpeg 300w\" sizes=\"auto, (max-width: 727px) 100vw, 727px\" \/><\/figure>\n\n\n\n<p><strong>India Placed In Lower Tariff Tier<\/strong><\/p>\n\n\n\n<p>The final decision was announced by the Office of the <a href=\"https:\/\/www.aninews.in\/news\/business\/us-cuts-additional-section-301-tariff-on-india-to-10-45-of-exports-remain-exempt-says-commerce-ministry20260725164524\/\">United States Trade Representative (USTR)<\/a> following its Section 301 investigation into the enforcement of prohibitions on goods produced using forced labour across 60 economies.<\/p>\n\n\n\n<p>According to the Commerce Ministry, India&#8217;s sustained engagement with USTR through written submissions, consultations and public hearings helped secure placement in the lower <strong>10% tariff tier<\/strong>, instead of the originally proposed 12.5%. This gives Indian exporters a relative advantage over many other countries covered under the investigation. <\/p>\n\n\n\n<p><strong>Which Exports Are Exempt?<\/strong><\/p>\n\n\n\n<p>The government said several of India&#8217;s major export categories will remain outside the scope of the additional 10% duty. These include <strong>generic pharmaceuticals, smartphones and certain other specified products<\/strong> that continue to enjoy exemptions.<\/p>\n\n\n\n<p>In addition, products already covered under separate <strong>Section 232<\/strong> measures\u2014such as <strong>steel, aluminium and auto parts<\/strong>\u2014will not face the new Section 301 tariff. As a result, an estimated <strong>45% of India&#8217;s exports to the US<\/strong> remain unaffected by the additional duty. <\/p>\n\n\n\n<p><strong>Remaining Exports Face 10% Additional Duty<\/strong><\/p>\n\n\n\n<p>The remaining <strong>55% of Indian exports<\/strong> to the US will be subject to the new <strong>10% ad valorem tariff<\/strong>, in addition to existing applicable import duties. However, the Commerce Ministry noted that India&#8217;s overall tariff incidence remains comparatively lower than that imposed on many other economies included in the Section 301 action.<\/p>\n\n\n\n<p><strong>Trade Talks Continue<\/strong><\/p>\n\n\n\n<p>The government emphasised that discussions with the United States are continuing under the proposed <strong>India-US Bilateral Trade Agreement (BTA)<\/strong>. Officials also clarified that the textile-specific mechanism mentioned in the US announcement has not yet been operationalised, and India is actively engaging with Washington on the issue.<\/p>\n\n\n\n<p>The Centre reiterated its commitment to concluding the bilateral trade agreement at the earliest while protecting India&#8217;s export interests. <\/p>\n\n\n\n<p><strong>Positive But Cautious Outlook<\/strong><\/p>\n\n\n\n<p>While the reduction from 12.5% to 10% offers some relief, exporters will continue to monitor developments closely, particularly in sectors that are not exempt. Industry experts believe the lower tariff rate, combined with ongoing trade negotiations, provides India with an opportunity to minimise the long-term impact on bilateral trade.<\/p>\n\n\n\n<p>The outcome also reflects the importance of continued diplomatic engagement as both countries work towards expanding economic cooperation.<\/p>\n\n\n\n<p><strong>Summary<\/strong><\/p>\n\n\n\n<p>The United States has reduced its additional Section 301 tariff on Indian imports from 12.5% to <strong>10%<\/strong>, with nearly <strong>45% of India&#8217;s exports<\/strong>, including pharmaceuticals and smartphones, remaining exempt. The remaining exports will face the new duty, while India and the US continue negotiations on a bilateral trade agreement aimed at strengthening long-term trade ties.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States has reduced the additional tariff on Indian imports under its Section 301 measures from the initially proposed 12.5% to 10%, providing partial relief to Indian exporters. The Ministry of Commerce and Industry said the revised tariff structure exempts nearly 45% of India&#8217;s exports to the US, reducing the overall impact on several [&hellip;]<\/p>\n","protected":false},"author":30,"featured_media":1312170,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[6394,1129],"class_list":["post-1312163","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-tariff","tag-us"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>45% Indian Exports Get Relief As US Reduces Tariff To 10% - Trak.in - Indian Business of Tech, Mobile &amp; Startups<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trak.in\/stories\/45-indian-exports-get-relief-as-us-reduces-tariff-to-10\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"45% Indian Exports Get Relief As US Reduces Tariff To 10% - Trak.in - Indian Business of Tech, Mobile &amp; Startups\" \/>\n<meta property=\"og:description\" content=\"The United States has reduced the additional tariff on Indian imports under its Section 301 measures from the initially proposed 12.5% to 10%, providing partial relief to Indian exporters. 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