Around 45% of India's exports to the United States will remain exempt from the newly imposed 10% additional tariff, according to the Ministry of Commerce and Industry. The clarification comes after the US introduced fresh duties under Section 301 measures targeting imports from multiple trading partners, including India. The ministry said the exempted product categories include generic pharmaceuticals, smartphones, steel, aluminium and auto parts, shielding a significant portion of India's exports from the additional levy. The remaining 55% of exports will be subject to the new 10% duty, which will be applied over and above existing US most-favoured-nation (MFN) tariffs. The US administration introduced the tariff as part of broader trade measures linked to concerns over the enforcement of forced-labour import restrictions. While India faces the additional duty on several manufactured goods, the government noted that the final tariff rate is lower than the 12.5% proposed earlier, reducing the overall impact on exporters. The Commerce Ministry said discussions with the US are continuing as part of negotiations for a bilateral trade agreement. Sector-specific issues, including market access for textile and apparel products, remain under discussion as both countries work towards concluding the pact. Industry bodies have, however, expressed concerns over the impact on sectors that remain covered by the tariff, particularly textiles and apparel, where Indian exporters could face increased competition from countries receiving preferential access under the revised US trade framework. Despite the additional tariffs, the government said it remains committed to strengthening trade ties with the United States and pursuing an early conclusion of the proposed bilateral trade agreement to improve long-term market access for Indian exporters. Follow CARGOCONNECT for more such updates.