India announced on Saturday that products representing about 45% of its exports to the United States will not be subject to the recent round of additional U.S. tariffs after bilateral trade negotiations led to a lower tariff designation under President Donald Trump's trade framework.
The Ministry of Commerce and Industry said in a dated statement on Saturday that this exempted share includes a range of goods such as generic medicines, smartphones, steel, aluminium and auto parts. These products will not incur the extra 10% levy that Washington introduced last week.
New Delhi said the exemptions should help Indian exporters preserve a competitive edge at a time when trade barriers are rising and future U.S. tariff policy remains uncertain. The government also said talks with Washington are ongoing as the two sides seek an early conclusion on a broader bilateral trade agreement.
Despite the exemptions, the ministry confirmed that the other 55% of Indian exports to the United States will be liable for the additional 10% duty. The statement noted that India’s tariff rates are still lower than those applied to many other economies covered by the U.S. measures.
Trade discussions between New Delhi and Washington have been underway since last year. A preliminary agreement reached in February had foreseen an 18% tariff on Indian goods, but later legal developments in the United States altered the path forward. The ministry’s statement referenced a U.S. Supreme Court ruling that invalidated the reciprocal tariff framework tied to President Trump, a change that affected the negotiating environment.
The announcement comes amid particular concern over possible U.S. tariffs on generic medicines, an issue that has weighed on Indian pharmaceutical companies for whom the United States is the largest export market. Earlier this month India publicly rejected suggestions it could face steeper tariffs tied to labour-related matters, saying the United States had not provided evidence that India lacked adequate safeguards against forced labour.
For exporters of affected goods, the mix of exemptions and levies will shape competitiveness in U.S. markets going forward. New Delhi framed the outcome as a partial victory while underscoring that negotiations remain active and that broader agreement discussions are ongoing.
Sectors mentioned: pharmaceuticals, electronics (smartphones), steel, aluminium, auto parts.