india US tariff – Artifex.News

45% of Indian exports to the U.S. will not face new 10% tariffs, Commerce Ministry says

admin — Sat, 25 Jul 2026 12:16:00 +0000

About 45% of India’s exports to the U.S. remains outside the purview of the new 10% tariff that Washington has levied on imports, the government said on Saturday.

The government also said that it remained engaged with the U.S. regarding a quota-based system regarding India’s textile exports to the U.S.

The office of the U.S. Trade Representative (USTR) on July 23 released the final findings of its investigation on whether the U.S’ trade partners were doing enough to prevent the import of goods made using forced labour. As a result of this investigation, it decided to levy a tariff of 10% on 17 economies, including India. While an additional five — the European Union, Taiwan, Japan, Korea, and Switzerland — will receive a lower effective tariff rate, the remaining 38 countries that were investigated will receive a higher tariff than India’s.

The statement by the Ministry of Commerce and Industry on Saturday highlighted that the new 10% tariff is lower than the initially proposed 12.5% on India and some other countries.

India’s efforts

“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,” it said, adding “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 that “a substantial share” of India’s exports to the U.S., currently attract zero additional duties, such as generic pharmaceuticals, smartphones and certain other specified products, and continue to remain outside the scope of the additional 10% duty.

Apart from these, it said that products already covered by U.S. measures under Section 232 of the U.S. Trade Expansion Act such as steel, aluminium and auto parts, are not subject to the additional 10% duty.

Further, it pointed out that the tariffs under Section 232, which had been levied last year and that range between 25-50%, are levied equally on nearly all countries thereby not putting India at a disadvantage in this regard.

“On account of these exemptions, an estimated 45% of India’s exports to the U.S. remain outside the purview of the additional 10% Section 301 duty,” the statement said.

‘Working with the U.S.’

The statement acknowledged that India’s remaining 55% of exports will attract the additional 10% duty, but added that India’s “tariff incidence is comparatively lower than that for most other economies covered by the investigation”.

That is, out of the 60 countries that were investigated, India’s tariff is lower than 38 other countries.

In its report, the USTR also provided for the establishment of a “textile mechanism” in the form of tariff-rate quotas (TRQs) for Bangladesh, Cambodia, Indonesia, and Malaysia, to encourage these countries to import U.S. cotton and textile goods, “in order to reduce reliance on inputs from other sources that are more likely to contain forced labour inputs”.

India was not included in this mechanism, but India said it continues working with the U.S. government regarding India’s textile exports.

Highlighting that the textile specific mechanism referenced in the final measures “is yet to be established and operationalised,” the Ministry said.“India continues to engage with the U.S. on this matter as part of the ongoing negotiations for the India-U.S. Bilateral Trade Agreement (BTA).”

The government “remains committed” to working with the U.S. towards the early conclusion of the India-U.S. BTA, the ministry said.

Published – July 25, 2026 05:38 pm IST

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World Bank raises India’s growth projection to 6.5% for 2025-26

admin — Tue, 07 Oct 2025 10:48:00 +0000

India is expected to remain the world’s fastest-growing major economy, said World Bank’s South Asia Development Update. File
| Photo Credit: Reuters

The World Bank on Tuesday (October 7, 2025) raised India’s growth forecast for the current fiscal to 6.5% from 6.3% estimated earlier, and said the country is expected to remain fastest-growing major economy, underpinned by continued strength in consumption growth.

The World Bank also cautioned that 50% tariffs on Indian shipments imposed by the U.S. will have implications on the country in the coming year.

It lowered the GDP growth forecast for 2026-27 to 6.3% from 6.5% earlier.

“India is expected to remain the world’s fastest-growing major economy, underpinned by continued strength in consumption growth,” said World Bank’s South Asia Development Update (October 2025).

Domestic conditions, particularly agricultural output and rural wage growth, have been better than expected. The government’s reforms to the Goods and Services Tax (GST) — reducing the number of tax brackets and simplifying compliance — are expected to support activity.

“The forecast for FY26/27 has been downgraded…as a result of the imposition of a 50% tariff on about three-quarters of India’s goods exports to the United States,” it said.

The report further said growth in South Asia is expected to slow sharply from 6.6% in 2025 to 5.8% in 2026.

Despite this deceleration, growth will remain stronger than in other emerging market and developing economies (EMDEs) regions.

Inflation is expected to continue within or trend toward the central bank targets, it said.

Published – October 07, 2025 04:18 pm IST

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India May Cut Duties On Some Goods From US, Day After Trump’s Tariffs Jab

admin — Wed, 29 Jan 2025 09:32:42 +0000

New Delhi:

India may cut tariffs on a few high-end goods – such as a special kind of steel, expensive motorcycles, and electronic items – imported from the United States, sources told NDTV Profit Wednesday. Such a move is not likely to have a major impact on the respective domestic industries and this could be confirmed Saturday, when Union Finance Minister Nirmala Sitharaman presents the budget. India imports 20 items from the US on which there are duties in excess of 100 per cent.

All of this comes a day after US President Donald Trump referred to India, China, and Brazil – founding members of the increasingly influential BRICS bloc – as “tremendous tariff makers”. Speaking to House Republicans, he said he would not allow this to continue, declaring, “… we’re not going to let that happen any longer… we’re going to put America first.”

“We’re going to put tariffs on outside countries and people that really mean harm to us. China is a tremendous tariff-maker, and India, Brazil, and so many other countries. (But) we’re not going to let that happen any longer… because we’re going to put America first,” Trump declared to cheers.

READ | Donald Trump Fires “Tremendous Tariff-Maker” Warning At India, China

Trump’s Tuesday broadside on India (and China and Brazil) and ‘high tariffs’ echoed comments made in September, in the build-up to the November 20 election. “We’re going to do reciprocal trade. If anybody charges us 10 cents (in duties)… if they charge us $2… if they charge us a 100 per cent or 250 per cent… we charge them the same thing,” he told his supporters.

“These people (referring to Indians, Chinese, and Brazilians) are the sharpest… they use it against us. But India is very tough. Brazil is very tough… China is the toughest of all… but we’re taking care of China with the tariffs,” he said.

The remarks then were made days before Prime Minister Narendra Modi’s visit, although that was when Joe Biden was still President. And now, days after his “tremendous tariff-makers” swipe, Mr Modi is scheduled to visit the US again.

High tariffs on goods imported into the US – specifically from China – were a frequent refrain during Trump’s campaign. He also warned of “100 per cent tariffs” on BRICS nations to shut down talk of not using the dollar as the common currency.

Trump’s tariffs tirade has been seen by many as a clear economic agenda, questionable though the means may be, and that is to jumpstart manufacturing in the US. By marking up the prices of key commodities like steel, semi-conductors, medicines, etc., he is hoping to do just that. “Under the ‘America First’ economic model, as tariffs on other countries go up, taxes on American workers and businesses will come down and massive numbers of jobs and factories will come home.”

READ | How Donald Trump Is Using “Tariffs” As A Weapon

The other perspective is ‘tariff as a weapon’, a point-of-view underlined by Trump’s clash with Colombia over deportations. The South American country initially refused to accept a plane loaded with ‘illegal immigrants’.

READ | “Cooperate Or…”: In Colombia Face-off, Trump’s Strong Message

The Trump administration responded by slapping a massive 25 per cent tariff on goods from there, leaving Colombian President Gustavo Petro with no option but to relent. Trump later declared the world would do well to look at this exchange.

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Donald Trump Fires “Tremendous Tariff-Maker” Warning At India, China

admin — Tue, 28 Jan 2025 09:18:54 +0000

New Delhi:

Donald Trump on Tuesday denounced India, China, and Brazil as “tremendous tariff-maker(s)” and said his government would not allow the three to continue down this path, declaring, “… we’re not going to let that happen any longer because we’re going to put America first.”

Speaking to House Republicans at a Florida retreat, the United States President acknowledged the three countries – founding members of the increasingly influential BRICS bloc – were acting in their respective best interests, but seemed also to insist “… they mean us harm”.

“We’re going to put tariffs on outside countries and people that really mean harm to us. Well… they mean us harm, but they basically want to make their country good. China is a tremendous tariff-maker, and India, Brazil, and so many other countries. (But) we’re not going to let that happen any longer… because we’re going to put America first,” Trump declared to cheers.

The comments came shortly after it emerged Prime Minister Narendra Modi is likely to meet Trump in Washington, as early as next month. The two leaders spoke on the phone Monday night; it is unclear if tariffs were on the agenda, but New Delhi’s view on ‘illegal immigrants was.

READ | “Mutually Beneficial, Trusted Partnership”: Modi-Trump Phone Call

However, the US President’s view on India and tariffs is seen by many as problematic, given he slammed Delhi – the US’ largest trading partner – as a “very big abuser” during his campaign.

Trump also spoke of a “very fair system” to “very quickly” make the US “richer and more powerful”, repeating what he said after he was sworn in last week; he said, “Instead of taxing our citizens to enrich other countries… we will tariff and tax foreign countries to enrich our citizens.”

And if foreign companies – Indian, Chinese, Brazilian, or others – want to avoid these high tariffs, Trump said, they would have to “build your plant right here in America”.

He also told the House Republicans of plans to slap tariffs on steel, aluminium, copper, and other materials required by the American military. “We have to bring production back… There was a time we made a ship a day. Now we can’t… We don’t know what the hell we’re doing.”

READ | “America First”: Trump Vows Tariffs On Nations That “Mean Harm” To US

High tariffs on goods imported into the US – specifically from China – were a frequent refrain during Trump’s campaign. He also warned of “100 per cent tariffs” on BRICS nations to (in his mind) shut down talk of member-nations not using the dollar as the common currency.

Trump’s tariffs tirade has a clear economic agenda, questionable though the means may be, and that is to jumpstart manufacturing in the US. By marking up the prices of key commodities like steel, semi-conductors, medicines, etc., he is hoping to do just that. “Under the ‘America First’ economic model, as tariffs on other countries go up, taxes on American workers and businesses will come down and massive numbers of jobs and factories will come home.”

READ | How Donald Trump Is Using “Tariffs” As A Weapon

Colombian President Gustavo Petro eventually relented; he had to, of course.

READ | “Cooperate Or…”: In Colombia Face-off, Trump’s Strong Message

White House Spokeswoman Karoline Leavitt was quick to claim a ‘victory’, saying: “Today’s events make clear to the world that America is respected again”, and Trump echoed that sentiment Monday, telling reporters “it serves the world well to look at” the Colombia spat.

With input from agencies

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