India will continue negotiations with the United States to finalise a long‑pending bilateral trade agreement, even as President Donald Trump imposed a 10% tariff on imports from India under Washington’s revised trade measures. The announcement came a day after the tariff was formally applied to goods from 60 trading partners, with the US alleging insufficient action against imports linked to forced labour.
New Delhi emphasised that the impact on Indian exporters will be limited, noting that around 45% of India’s shipments to the US remain exempt from the new duty. According to the Commerce Ministry, the revised tariff excludes key sectors such as generic pharmaceuticals, smartphones, steel, aluminium, and auto parts — categories that form a substantial portion of India’s export basket.
The ministry said India remains committed to concluding the India–US Bilateral Trade Agreement, stressing that discussions with Washington will continue on sector‑specific issues, including textiles, where India seeks improved market access. Officials added that the latest tariff is lower than the 12.5% duty proposed in June, giving India more room to navigate negotiations.
The US remains one of India’s largest trading partners, and both countries have been working since last year to resolve long‑standing concerns over market access, regulatory barriers, digital trade rules, and agricultural exports. Despite the tariff move, New Delhi believes the broader economic relationship remains strong, with both sides keen to deepen cooperation in supply chains, technology, and investment.
The tariff decision comes amid rising global trade tensions and Washington’s push to reshape import dependencies. India’s calibrated response signals its intent to protect domestic exporters while keeping diplomatic and economic channels open.