No new 10% tariff impact for 45% of exports: Centre

What happened: India’s estimate of exports unaffected by the US additional 10% tariff

The Government of India responded to the United States’ announcement of permanent tariffs of 10% on imports from 60 trading partners tied to forced-labour-related goods. The Ministry of Commerce and Industry stated that about 45% of India’s exports to the United States would remain outside the additional 10% duty due to exemptions and the defined scope of product coverage.

Background and earlier position

The Ministry of Commerce and Industry’s explanation relied on two elements of United States tariff design under the forced-labour-related additional duty: Exemptions and product-specific coverage: the Ministry stated that some product categories face zero additional duty under the forced-labour-related additional 10% rate.Overlap with existing United States tariff authorities: the Ministry stated that products already covered under Section 232 of the US Trade Expansion Act (examples cited by the Ministry include steel, aluminium, and auto parts) are not subjected to the additional 10% levy.

What changed now: 12.5% proposal lowered to 10%, while scope exclusions continue

The Ministry of Commerce and Industry stated that the final forced-labour-related additional tariff rate is 10%, which is lower than an initially proposed 12.5% rate. The Ministry also reiterated that some product categories currently attracting zero additional duties remain outside the extra 10% tariff.