45% of US exports out of Section 301 duty; textile mechanism still pending, says govt
In a statement made by the ministry of commerce and industry, it was stated that a textile-specific mechanism referred to in the final measures has not yet been established and that New Delhi continues to engage with Washington on the issue as part of ongoing negotiations for a bilateral trade agreement.
In FY26, India exported goods worth $87.3 billion to the US. “The remaining 55% of exports will attract additional duty of 10%, where India’s tariff impact is relatively lower than most other economies under investigation,” the ministry said.
The US Trade Representative (USTR) on Thursday announced final measures to impose an additional 10% ad valorem duty on imports from India under Section 301 of the US Trade Act of 1974, lower than the 12.5% duty first proposed on June 2.
The Indian government remained “closely engaged” with USTR throughout the investigation through detailed written submissions and personal consultations, including participation in public hearings, according to the statement.
“As a result of these sustained efforts, India has been placed in the lower tier of additional tariffs under the final measures, giving a relative advantage to India’s exports in key sectors,” the ministry said. he said. A significant portion of India’s exports to the US, which are not currently subject to any additional duty, such as generic drugs, smartphones and certain other products, and products already covered by Section 232 measures, including steel, aluminum and auto parts, are not subject to the 10% additional duty. Part 232 duties generally apply to all states, with limited exceptions.
The Gems and Jewelery Export Promotion Council (GJEPC), while rejecting any insinuation that India’s gems and jewelery sector is linked to forced labour, has emphasized that the 10 per cent duty gives Indian exporters a 2.5 per cent tariff advantage over various rival manufacturing and trading hubs, including China and Hong Kong, all of which are now subject to an additional 12.5 per cent duty. However, GJEPC said the new tariff would create challenges for Indian exporters, especially as major rival diamond trading hubs such as the EU and Africa continue to enjoy duty-free access to natural diamonds.
