India Says 45% of U.S.-Bound Exports Escape New 10% Tariff

The U.S. Trade Representative's final findings, released July 23, concluded that 17 economies, including India, were not doing enough to prevent imports of goods made using forced labor. The USTR levied a 10% tariff on those countries. Five others – the European Union, Taiwan, Japan, Korea, and Switzerland – received a lower effective rate. The remaining 38 countries face higher tariffs than India's.

The 10% rate is lower than the initially proposed 12.5% for India and some other nations. "The Government of India remained closely engaged with the USTR throughout the investigation through detailed written submissions and in-person consultations, including participation in public hearings," the ministry said. "As a result of these sustained efforts, India has been placed in the lower tier of additional tariffs."

The USTR's report also established a "textile mechanism" – tariff-rate quotas for Bangladesh, Cambodia, Indonesia, and Malaysia – to encourage those countries to import U.S. cotton and textile goods. India was not included in that mechanism. The ministry said the mechanism "is yet to be established and operationalised" and that India continues to engage with the U.S. on textile exports as part of ongoing negotiations for the India-U.S. Bilateral Trade Agreement.