India to keep engaging with US on trade deal after new tariff measures

MUMBAI: 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.

“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.