India achieved success in trade negotiations with the United States by exempting approximately 45% of its exports to the U.S. from the Trump administration's new additional tariffs.

According to Investing.com on the 26th (local time), the Indian government expects this measure to help strengthen export competitiveness, while stating that it will continue negotiations for concluding a comprehensive bilateral trade agreement.

▲ 45% of U.S. Exports Exempted from Additional 10% Tariff

The Indian Ministry of Commerce and Industry stated on the 26th (local time) that approximately 45% of India's exports to the U.S. have been exempted from the additional 10% tariff announced by the United States last week.

The tariff exemption covers major export items including generic medicines, smartphones, steel, aluminum, and automotive parts.

India secured this benefit by being subject to relatively lower tariff rates in the U.S.'s new trade system, the government explained.

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▲ Expectations for Strengthened Export Competitiveness

The Indian government forecasts that this tariff exemption will help boost the competitiveness of exporting companies facing difficulties due to expanding trade barriers and uncertainty in U.S. tariff policies.

It also stated that it is continuing consultations to conclude a more comprehensive bilateral trade agreement with the United States at an early stage.

▲ Remaining 55% Subject to Additional Tariffs

Meanwhile, the remaining 55% of India's exports to the U.S. will be subject to the additional 10% tariff newly introduced by the United States.

However, the Indian government emphasized that the tariff rate applied to its country remains lower than many other countries included in the U.S. measure.

▲ U.S.-India Trade Negotiations Enter New Phase Following Court Ruling

The two countries have continued trade negotiations since last year.

In a preliminary agreement reached in February, a plan to apply an 18% tariff on Indian products was included, but the U.S. Federal Supreme Court subsequently invalidated President Trump's reciprocal tariff system, creating changes in the negotiation environment.

This legal change has affected the overall U.S. trade policy and served as a new variable in negotiations between the two countries.

▲ Concerns Over Generic Medicine Tariffs Persist

This announcement came amid growing concerns that the United States is also considering additional tariffs on generic medicines.

Since the U.S. is the largest export market for India's pharmaceutical industry, the possibility of tariff imposition is acting as a burden factor on Indian pharmaceutical companies' performance and export prospects.

▲ Rebuttal to Labor-Related Tariff Pressure

The Indian government also rebutted claims made earlier this month that it could face higher tariffs due to labor-related issues.

The government argued that the United States failed to provide specific evidence to prove that India's forced labor prevention system is inadequate, and stated its position that additional tariffs on the basis of labor standards lack justification.