Almost half of India’s exports to the United States will avoid the new 10% tariff imposed by the Trump administration. New Delhi has successfully negotiated favorable terms, giving its exporters a competitive edge amid a global rise in trade barriers.
According to a statement by India’s Ministry of Commerce and Industry last Saturday, products accounting for approximately 45% of exports to the US will be exempt from additional duties. This list includes generics, smartphones, steel, aluminum, and automotive components.
The remaining 55% of Indian exports will be subject to the 10% tariff. However, the ministry emphasized that the overall rate for India is lower than that for most other countries affected by the new American protectionist measures. Currently, New Delhi and Washington are continuing negotiations aimed at reaching a comprehensive bilateral trade agreement.
The exemption for pharmaceutical products has alleviated significant risks for Indian generic manufacturers, for whom the US remains the largest market. Previously, the industry feared that the imposition of tariffs on medicines would undermine sector profitability.
The trade landscape between the countries has shifted after the US Supreme Court invalidated Donald Trump’s reciprocal tariff system. This ruling nullified preliminary agreements from February that proposed a total rate of 18% on Indian goods.
In addition, earlier this month, India successfully thwarted US attempts to impose higher tariffs on the grounds of alleged labor law violations. New Delhi stated that Washington had failed to provide evidence of forced labor within Indian enterprises.
