The textile specific mechanism referenced in the final measures is yet to be established and India continues to engage with the US on the issue as part of the ongoing negotiations for the Bilateral Trade Agreement, the commerce and industry ministry said in a statement.
India’s goods exports to the US were $87.3 billion in FY26.
“The remaining 55% of exports will attract the additional 10% duty, where India’s tariff incidence is comparatively lower than that for most other economies covered by the investigation,” it said.
The US Trade Representative (USTR) on July 23 announced the final measures under Section 301 of the US Trade Act, 1974 wherein it imposed an additional 10% ad valorem duty on imports from India, lower than the 12.5% duty initially proposed on June 2, 2026.
As per the statement, the government of India remained “closely engaged” with USTR throughout the investigation through detailed written submissions and in-person consultations, including participation in public hearings.
“As a result of these sustained efforts, India has been placed in the lower tier of additional tariffs under the final measures, providing a relative advantage to Indian exports in key sectors,” the ministry said.Also Read | Trump’s tariffs just went from 12.5% to 10%: Why did India get a breather and what it means?
A substantial share of India’s exports to the US, which currently attract zero additional duties, such as generic pharmaceuticals, smartphones and certain other specified products, and products already covered under Section 232 measures, including steel, aluminium and auto parts, are not subject to the additional 10% duty. Section 232 duties are applicable broadly to all countries with limited exceptions.
Though the tariffs on India were lower than 38 countries including China, Russia and Brazil which have been slapped with 12.5% tariffs, New Delhi didn’t get the textile and apparel tariff-rate quota exemption, which applies to specified volumes of textile and apparel exports from Bangladesh, Cambodia, Indonesia, and Malaysia that use US-origin cotton and fibre.
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“The textile specific mechanism referenced in the final measures is yet to be established and operationalised. India continues to engage with the US on this matter as part of the ongoing negotiations for the India-US BTA,” the ministry said.
The government, according to the ministry, remains committed to working with the US towards the early conclusion of the BTA as announced on February 2, 2026 and in accordance with the Joint Statement issued on February 7, 2026.