India in lower tariff tier in US Section 301 measures, committed to early trade pact conclusion: Govt

New Delhi: The government remained closely engaged with the United States Trade Representative (USTR) throughout the Section 301 investigation over forced labour and 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, an official statement said on Saturday.

The government said it remains committed to working with the United States towards the early conclusion of the India-US Bilateral Trade Agreement (BTA).

The 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.

The 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 June 2, 2026.

“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,” said the Ministry of Commerce and Industry 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.

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 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, the ministry informed.

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.

IANS