# Nearly Half of India's Exports to the United States Fall Outside the New Tariff

> The Commerce Ministry says about 45 percent of shipments are unaffected by Washington's new 10 percent levy. Textiles remain under negotiation.

- Source: India Max
- Canonical URL: https://indiamax.net/article/us-tariff-india-exports-exempt-share
- Author: Ananya Rao
- Section: Business
- Published: 2026-07-25T13:15:00.000Z
- Updated: 2026-07-25T13:15:00.000Z
- Tags: Tariffs, Exports, USTR, Trade

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About 45 percent of India's exports to the United States sit outside the new 10 percent tariff Washington has imposed, the government said on Saturday. Talks continue with the United States on a quota based arrangement for Indian textile exports.

The tariff follows the final findings of an investigation by the office of the United States Trade Representative, published on 23 July, into whether American trading partners were doing enough to prevent the import of goods made with forced labour. The outcome was a 10 percent levy applied to 17 economies, India among them.

The exempt share is the number worth sitting with. Slightly less than half of the trade continues untouched, which softens the headline considerably, but it also means slightly more than half does not. An average across a whole trade relationship tells you very little about the exporters inside it, because the burden lands entirely on whichever product categories are covered.

That is why textiles are being negotiated separately. A quota arrangement caps volumes rather than raising prices, which suits a sector competing on thin margins against lower cost producers. It also converts a tariff dispute into an allocation question, and allocation is decided administratively rather than by the market.

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Originally published by India Max. Free to cite with attribution and a link to https://indiamax.net/article/us-tariff-india-exports-exempt-share.