45% exports outside purview of US 301 levy: Commerce Ministry

Union Ministry of Commerce & Industry said 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.

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The United States have levied fresh tariff in the range of 10 per cent – 12.5 per cent on 60 largest trading partners including India, following its investigations under Section 301(b) of the Trade Act of 1974. The investigations pertain to Failure to Impose and Effectively Enforce a Prohibition on the Importation of Goods Produced with Forced Labour.

The United States Trade Representative (USTR) has imposed an additional 10 per cent  ad valorem duty on imports from India. This is a reduction from the 12.5 per cent duty initially proposed on 2nd June 2026, the Commerce Ministry said in a statement.

The Government of India remained closely engaged with USTR throughout the investigation through 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, it added.

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, the Ministry 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., it added.

The textile specific mechanism referenced in the final measures is yet to be established and operationalised. India continues to engage with the U.S. on this matter as part of the ongoing negotiations for the India-U.S. Bilateral Trade Agreement, the Ministry said.

The Government remains committed to working with the United States towards the early conclusion of the India-U.S. Bilateral Trade Agreement, as announced on 2 February 2026 and in accordance with the Joint Statement issued on 7 February 2026, it said.

 

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