India announced Saturday that it intends to keep working toward a trade deal with the United States, even after Washington moved to impose a 10% tariff on goods imported from the South Asian country.
The Trump administration unveiled the new duties on Friday, setting rates between 10% and 12.5% on products from 60 trading partners. The administration’s rationale was that these countries had not done enough to prevent the importation of goods produced using forced labor.
India’s commerce ministry pointed out that the 10% rate applied to Indian goods is actually lower than the 12.5% tariff that had been proposed back in June. The ministry also noted that several key product categories — including generic pharmaceuticals, smartphones, steel, aluminum, and auto parts — are excluded from the new tariff.
According to the ministry, roughly 45% of India’s exports to the United States will fall outside the scope of the new tariff thanks to those product exemptions, while the remaining 55% will be subject to the new 10% duty. The new charges are applied on top of existing standard U.S. tariffs.
India said it remains committed to ongoing discussions with the U.S. on sector-specific concerns, including the textile industry, as part of the broader bilateral trade negotiations. The two nations have been working on a trade agreement since last year, aiming to strengthen economic ties and address long-standing disputes over market access.
“The government remains committed to working with the United States towards the early conclusion of the India-U.S. Bilateral Trade Agreement,” the commerce ministry said in its statement.
Indian textile and apparel exporters are expected to face increased competition from several other Asian countries under the new tariff structure, putting them at a potential disadvantage in the U.S. market.
