Loading...
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.
Ras Al Khaimah Economic Zone (RAKEZ) has brought together key stakeholders from across the trade ecosystem through The Global Trade Journey, a practical workshop designed to help industrial and manufacturing businesses navigate cross-border complexities, strengthen logistics operations and identify opportunities for international expansion. The workshop connected RAKEZ clients with experts from RAK Customs, Hutchison Ports, DHL Express and The Dollar Business, bringing customs procedures, port operations, international logistics and market development into a single forum. The initiative offered businesses practical insights into the interconnected processes involved in moving goods across borders and accessing new markets. For manufacturers and trading companies, competitiveness extends beyond production capacity to include regulatory compliance, efficient cargo movement and the ability to connect with international buyers and suppliers. Understanding how these elements work together can help businesses make informed decisions as they expand their trade footprint. “Competitiveness extends well beyond what happens within the factory or warehouse. How efficiently goods move, how well businesses understand customs and logistics requirements, and how effectively they identify and access new markets can all have a direct impact on growth,” said Ramy Jallad, Group CEO, RAKEZ. He added that RAKEZ aims to equip its clients with access to the expertise and industry connections needed to navigate these requirements confidently and pursue opportunities beyond the UAE. During the workshop, RAK Customs provided guidance on customs procedures and documentation, while Hutchison Ports shared insights into port and shipping operations. DHL Express addressed international logistics and the movement of goods across markets, and The Dollar Business explored approaches to identifying new markets and connecting with prospective buyers and suppliers. Dedicated one-to-one discussions also enabled participants to engage directly with the experts and seek guidance relevant to their business needs. The initiative reflects RAKEZ’s wider approach to supporting its industrial and manufacturing community beyond infrastructure provision. By connecting businesses with government entities, logistics providers and industry specialists, the economic zone aims to improve access to practical knowledge and professional networks that can support operational efficiency and informed growth decisions. As businesses look to expand across borders, the ability to navigate customs requirements, understand logistics processes and identify suitable international markets remains central to building competitive supply chains. Through The Global Trade Journey, RAKEZ is strengthening connections across the trade ecosystem to help businesses manage these complexities and pursue global growth opportunities.
