India says US trade talks helped it secure an export advantage

Synopsis

India secured an advantage in United States tariffs due to ongoing trade negotiations. A significant portion of Indian exports remain exempt from the recent additional levies. This allows key sectors like pharmaceuticals and smartphones to maintain their market access.

(Bloomberg) --India said trade negotiations with the US have helped place it in the “lower tier” of additional tariffs imposed by President Donald Trump’s administration, allowing the country to secure an advantage for key exports.
A large portion of India’s exports to the US, including generic pharmaceuticals and smartphones, continue to be exempt from the additional 10% levy imposed last week, the Ministry of Commerce and Industry said in a statement dated Saturday. It added that it’s working towards the early conclusion of a bilateral trade agreement.

Products such as steel, aluminium and auto parts are also not subject to the extra 10% duty, the ministry said, with the exemptions taking an estimated 45% of India’s exports to the US outside the scope of the additional levies.

“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,” the statement read.

The government’s remarks come even as Trump’s plan to impose steep tariffs on generic medicines has unsettled Indian drugmakers and put the spotlight on their strategy in their biggest export market.

The two countries have been locked in negotiations over a trade deal since last year. While an initial trade agreement was reached in February with an 18% duty on Indian goods, a US Supreme Court order shortly after invalidated Trump’s reciprocal tariffs.

This month, India defended itself against the threats of higher US tariffs, arguing that Washington failed to provide evidence the country lacked policies preventing forced labor.