India will continue engaging with the United States on a bilateral trade agreement, following Washington's imposition of a 10% tariff on certain imports from India under new trade measures.
The new US tariffs could impact India's export competitiveness, particularly in the textile sector, while ongoing trade negotiations aim to deepen economic ties and resolve market access issues between the two nations.
The United States has imposed a 10% tariff on certain imports from India as part of new trade measures targeting countries that allegedly failed to curb imports made with forced labor. The Trump administration announced the duties, which range from 10% to 12.5% on goods from 60 trading partners. India's commerce ministry noted that the tariff on its exports is 10%, lower than the previously proposed 12.5%, and that key products such as pharmaceuticals, smartphones, steel, aluminum, and auto parts are excluded. India stated it remains committed to engaging with the US to conclude a bilateral trade agreement and will continue discussions on sector-specific issues like textiles. Approximately 45% of India's exports to the US will be exempt from the new tariff, while the remaining 55% will be subject to the 10% duty, which applies on top of existing most-favored-nation tariffs. Indian textile and apparel exporters are expected to be at a disadvantage compared to some Asian rivals under the new regime.