New Delhi: United States Trade Representative (USTR) has placed India in the lower tariff tier under the final Section 301 tariffs, imposing an additional 10% duty on eligible imports while exempting about 45% of India’s exports to the United States.
The USTR announced the final measures on July 23 after investigating the forced labour policies and practices of 60 economies, including India. Meanwhile, the additional duty for India was reduced from the 12.5% proposed on June 2 to 10%.
The government said it remained closely engaged with the USTR throughout the investigation. As a result, India secured placement in the lower tariff tier after submitting detailed representations, participating in consultations and attending public hearings.
Section 301 tariffs exempt key Indian exports
According to the government, generic pharmaceuticals, smartphones and certain other specified products remain outside the scope of the additional duty. In addition, products already covered under Section 232 measures, including steel, aluminium and auto parts, will not attract the extra 10% duty.
The government said these exemptions keep about 45% of India’s exports to the United States outside the Section 301 tariffs. However, the remaining 55% of exports will attract the additional 10% duty. It added that India’s tariff burden remains lower than that of most other economies covered by the investigation.
Furthermore, the textile-specific mechanism mentioned in the final measures is yet to become operational. India will continue discussions with the United States as part of negotiations for the proposed India-US Bilateral Trade Agreement. Finally, the government reaffirmed its commitment to concluding the agreement at the earliest.
