By Ashwin Manikandan
MUMBAI, July 25 (Reuters) – India said on Saturday it would continue engaging with the United States to conclude a bilateral trade agreement, after Washington imposed a 10% tariff on imports from the South Asian nation under new trade measures.
The Trump administration on Friday unveiled fresh duties of between 10% and 12.5% on goods from 60 trading partners, including India, alleging those countries had failed to curb imports made with forced labour.
The fresh duty on India is lower than the 12.5% tariff proposed in June and excludes products such as generic pharmaceuticals, smartphones, steel, aluminium and auto parts, India’s commerce ministry said in a statement.
India remains engaged with the United States and would continue discussions on sector-specific issues, including textiles, as part of negotiations on a bilateral trade pact, the statement said.
The two countries have been negotiating a trade agreement since last year as they seek to deepen economic ties and resolve long-standing market access issues.
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“The government remains committed to working with the United States towards the early conclusion of the India-U.S. Bilateral Trade Agreement,” the ministry said.
It said about 45% of India’s exports to the United States would remain outside the scope of the fresh tariff because of product exemptions, while the remaining 55% would face the new 10% duty.
The fresh levy applies on top of standard U.S. most-favoured-nation tariffs.
Reuters reported on Friday that Indian textile and apparel exporters are likely to be at a disadvantage against several Asian rivals under the new tariff regime.
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(Reporting by Ashwin Manikandan; Editing by Susan Fenton)
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