India has urged the United States to resolve trade-related concerns through bilateral negotiations instead of imposing unilateral tariffs, while asking the Office of the United States Trade Representative (USTR) to reconsider its proposed 12.5% tariff linked to a Section 301 investigation into forced labour.
During a public hearing held on July 8, India argued that the USTR’s findings contain several inconsistencies and do not meet the legal standards required under US trade law. The hearing transcript was later published on the USTR website.
India-US Trade News: India Challenges USTR’s Section 301 Investigation
Representing India at the hearing, Joint Secretary in the Department of Commerce Brij Mohan Mishra said the country has been actively addressing concerns related to forced labour and therefore strongly disagrees with the USTR’s conclusions. He said India treats the elimination of forced labour as both a constitutional responsibility and an international obligation.
“India would like to highlight its concerns with the USTR’s report and findings against India,” Mishra said. According to him, the USTR has failed to satisfy the legal requirements laid down under Section 301(d) of the US Trade Act.
He argued that simply because India does not have a specific ban on imports made with forced labour does not automatically make its trade practices unreasonable under Section 301 without sufficient supporting evidence.
India-US Trade News: India Questions Basis for Proposed Tariff
India also criticised the methodology used in the USTR investigation, saying it relied on a limited number of case studies and broad global trade patterns instead of country-specific evidence.
Mishra said the report assumes that imports flagged for forced labour in certain countries eventually reach the US market without establishing any direct connection between those imports and India’s exports.
He added that the report does not provide adequate evidence to prove that India’s policies create an unfair competitive advantage or harm American industries.
The Indian government further argued that the USTR’s recommendation unfairly groups 46 economies, including India, under a single category without offering separate justification for imposing countrywide tariffs.
India-US Trade News: India Calls for Bilateral Negotiations Instead of Tariffs
Concluding his submission, Mishra urged the USTR to withdraw the proposed tariff after reviewing the inconsistencies identified in the investigation.
“In conclusion, it is submitted that the USTR reconsider the imposition of tariff in light of the identified inconsistencies in the report in the Federal Register notice. We ask any trade problems be addressed within the framework of the India-US bilateral trade negotiation, not through unilateral measures such as this investigation,” he said.
He also reiterated India’s willingness to continue discussions with the USTR through consultations and constructive dialogue to resolve any specific concerns.
India-US Trade News: APEDA Defends Indian Rice Exports
Representing the Agricultural and Processed Food Products Export Development Authority (APEDA), First Secretary at the Embassy of India in Washington, DC, Shreyans Gupta challenged the USTR’s claims regarding rice imports allegedly produced with forced labour. He said India’s rice imports are extremely limited and mainly serve niche demand for specific rice varieties.
According to Gupta, the total value of rice imported into India is less than three per cent of the value of rice exported from India to the United States.
He also pointed out that India has strict regulatory safeguards to ensure that imported rice produced with forced labour cannot be re-exported to the US. Only rice processed at mills and units registered with India’s agriculture ministry is permitted for export to the American market.
“For these reasons, the present investigation against India may be rescinded without prejudice,” Gupta said while requesting that Indian rice be exempted from the proposed tariff if the investigation continues.
India-US Trade News: Industry Bodies Warn Against Additional Tariffs
Indian industry organisations also opposed the proposed tariff during the consultation process. The Federation of Indian Chambers of Commerce and Industry (FICCI) said the additional duty should be carefully reconsidered because it would increase costs across the supply chain.
“An additional tariff will increase costs not only for Indian exporters, but also for US manufacturers, importers, retailers, and ultimately, American consumers,” the chamber said.
FICCI added that higher tariffs would increase expenses for businesses already complying with regulatory standards and could disrupt reliable India-US supply chains.
The Confederation of Indian Industry (CII) also argued that the proposed 12.5% tariff is not supported by the evidence presented in the investigation. According to CII, the USTR report does not establish that India’s policy framework places an unfair burden on US commerce.
India-US Trade News: What Is the USTR’s Proposed Tariff?
The USTR launched two separate Section 301 investigations on March 11 and 12, 2026, covering 60 economies over concerns related to forced labour and excess industrial capacity. On June 3, it released the findings of the forced labour investigation and proposed additional tariffs on imports from the affected economies.
The proposal recommends a 10% tariff on imports from Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, while imports from 54 other economies, including India and China, would face a proposed 12.5% tariff.
The proposal has not yet been finalised. The USTR is currently reviewing public comments and testimony submitted during the hearing before making a final decision on whether to implement the proposed tariffs.
