45% of Indian exports to the U.S. will not face new 10% tariffs, Commerce Ministry says
The Indian Commerce Ministry announced that 45% of India's exports to the US remain exempt from new 10% tariffs imposed due to forced labor investigations. The government continues to negotiate for better terms, noting that India's tariff rate is lower than initially proposed.
Why it matters
Trade relations and tariff adjustments significantly impact India's export-heavy sectors and overall economic health in the US market.
About 45% of India’s exports to the U.S. remains outside the purview of the new 10% tariff that Washington has levied on imports, the government said on Saturday.
The government also said that it remained engaged with the U.S. regarding a quota-based system regarding India’s textile exports to the U.S.
The office of the U.S. Trade Representative (USTR) on July 23 released the final findings of its investigation on whether the U.S’ trade partners were doing enough to prevent the import of goods made using forced labour. As a result of this investigation, it decided to levy a tariff of 10% on 17 economies, including India. While an additional five — the European Union, Taiwan, Japan, Korea, and Switzerland — will receive a lower effective tariff rate, the remaining 38 countries that were investigated will receive a higher tariff than India’s.
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