New Delhi/Washington, July 25 -- India will pay a 10% tariff on most of its exports to the US from Friday after the Trump administration rolled out the levy under a new legal provision as the successor to the temporary duty of the same rate that expired on July 24.

The 10% rate is lower than the 12.5% India would have faced under the office of the US Trade Representative's (USTR) June draft, and averts a comparative disadvantage against China, Vietnam and around 36 other economies that were placed in the higher bracket. The tariff, imposed under Section 301 of the US Trade Act of 1974, is paid on top of the applicable Most-Favoured-Nation (MFN) duty, and follows the conclusion of one of two Section 301 investigations against India.

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