The government on Saturday said the US has kept India in lower tariff bracket of 10 per cent under its <a href="https://www.mid-day.com/news/world-news/article/us-slaps-10-per-cent-tariffs-on-goods-imported-from-india-on-issue-forced-labour-23641361" target="_blank" rel="none noopener">Section 301 measures</a> on alleged forced labour concerns.
The United States Trade Representative (USTR) on July 23 announced the final measures under Section 301 of the US Trade Act, 1974.
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.
<a href="https://www.mid-day.com/business/business-news/article/india-urges-us-to-reconsider-125-proposed-tariff-says-ustr-report-flawed-23639294" target="_blank" rel="none noopener">USTR </a>has imposed an additional 10 per cent tariffs on imports from India. The US had initially proposed a 12.5 per cent tariffs.
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.
A substantial share of India's exports to the United States, 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, it said.
Further, products already covered under Section 232 measures, including steel, aluminium and auto parts, are not subject to the additional 10 per cent duty.
Section 232 duties are applicable broadly to all countries with limited exceptions.
"On account of these exemptions, an estimated 45 per cent of India's exports to the United States remain outside the purview of the additional 10 per cent Section 301 duty," the ministry said.
The remaining 55 per cent of exports will attract the additional 10 per cent duty, where India's tariff incidence is comparatively lower than that for most other economies covered by the investigation.
It also said the textile-specific mechanism referenced in the final measures is yet to be established and operationalised and India continues to engage with the US on this matter as part of the ongoing negotiations for the Bilateral Trade Agreement.
"The government remains committed to working with the US towards the early conclusion of the <a href="https://www.mid-day.com/news/india-news/article/india-continues-talks-with-us-over-proposed-tariffs-as-trade-deal-negotiations-advance-23633452" target="_blank" rel="none noopener">India-US Bilateral Trade Agreement</a>, as announced on 2nd February 2026 and in accordance with the Joint Statement issued on 7th February 2026," it said
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The government said approximately  45 per cent of India`s exports to US remains outside the purview of the additional 10 per cent Section 301 duty

Govt: US keeps India in lower tariff bracket of 10 per cent under Section 301

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An estimated 45 per cent of India's exports to the United States remain outside the purview of the additional 10 per cent Section 301 duty

Centre: India in lower tariff tier at 10 per cent under US Section 301 measures on forced labour

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