India Continues Trade Deal Talks with US After New 10% Tariff Imposed

Mumbai, July 26, 2026 — India said on Saturday it would continue engaging with the United States to conclude a bilateral trade agreement, after Washington imposed a 10 percent tariff on imports from the South Asian nation under new trade measures. 🌏

🇺🇸 The Trump administration on Friday unveiled fresh duties of between 10 percent and 12.5 percent on goods from 60 trading partners, including India and Bangladesh, alleging those countries had failed to curb imports made with forced labour. ⚠

📊 India's Tariff Details and Exemptions

📋 The fresh duty on India is lower than the 12.5 percent tariff proposed in June and excludes several key products, according to India's commerce ministry:

• ✅ Generic pharmaceuticals — exempted from the new tariff
• 📱 Smartphones — exempted
• 🔧 Steel and aluminium — exempted
• 🚗 Auto parts — exempted
• 👕 Textiles — NOT exempted, remain subject to the 10% duty

📊 India's commerce ministry said about 45 percent 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 percent would face the new 10 percent duty. 💰 The fresh levy applies on top of standard US most-favoured-nation (MFN) tariffs.

🤝 India's Response and Trade Negotiations

📝 India's commerce ministry issued a statement confirming ongoing engagement:

"The government remains committed to working with the United States towards the early conclusion of the India-U.S. Bilateral Trade Agreement."

📊 Key points about the trade negotiations:

• 📅 Negotiations started: Last year (2025)
• 🤝 Purpose: Deepen economic ties and resolve long-standing market access issues
• 👕 Sector focus: Textiles remain a key discussion area
• 📋 Approach: India continues discussions on sector-specific issues

👕 Impact on Textile Exports

⚠ 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. 📊 This is significant for Bangladesh because:

• 🇧🇩 Bangladesh faces the same 10% tariff — both countries compete in the US apparel market
• 👕 Textile sector competition — India and Bangladesh are both major textile exporters to the US
• 🤝 Negotiation lessons — India's success in securing exemptions for pharma, smartphones, steel, and aluminium shows the value of sector-specific trade negotiations
• 📈 Comparative advantage — India's 45% exemption rate gives it a potential edge over Bangladesh, which has not secured similar exemptions

🌏 Lessons for Bangladesh

📊 India's approach to the US tariff situation offers important lessons for Bangladesh's trade negotiators:

• 🤝 Proactive engagement — India has been negotiating a bilateral trade agreement since 2025
• 📋 Sector-specific exemptions — India secured exemptions for key export sectors (pharma, tech, steel, autos)
• 📝 Strategic communication — India's commerce ministry issued a clear, measured public statement
• 📈 Long-term planning — India has been building its trade negotiation capacity over years

🌏 For Bangladesh, which also faces the 10% US tariff without any sector exemptions, the lesson is clear: proactive engagement with the US on trade negotiations, including sector-specific exemption requests, could help mitigate the tariff impact on the country's export-oriented industries. 👕