India has responded to the United States’ proposal to impose further tariffs on imports from 60 economies, including India, under Section 301 of the US Trade Act of 1974. The proposed duties, announced by the administration of US President Donald Trump, are tied to concerns over the import of goods allegedly produced using forced labour.
While the proposal has been criticized by exporters, New Delhi has said it remains in talks with Washington on the issue and that broader trade negotiations between the two nations are under way.
What Did India Say on Proposed US Tariffs?
In a statement, the Ministry of Commerce said India is engaged with the United States as part of the ongoing Section 301 proceedings. It said that discussions are also underway to finalise a bilateral trade framework agreement announced earlier this year.
The statement said India is pursuing both tracks at the same time, and working on the tariff issue while continuing broader trade talks with Washington.
The US Trade Representative (USTR) has finished investigations involving 60 economies, including India. Based on these findings, it has proposed imposing further tariffs of up to 12.5 per cent on imports from the countries concerned.
Washington has said the proposed economies have not taken sufficient steps to prohibit or enforce restrictions on imports from the affected economies linked to forced labour.
Which Products Could Be Affected?
India noted that products already covered under Section 232 tariffs, along with certain other categories, have been excluded from the latest proposal.
The government also highlighted a special mechanism for textile and apparel products. Under this proposal, a specified volume of imports from selected economies could enter the US market at lower tariff rates.
Are the Tariffs Final?
No. The proposed tariffs are still subject to a public consultation process.
Key dates to note:
-
June 22, 2026: Deadline to request participation in public hearings
-
July 6, 2026: Last date for written submissions
-
July 7, 2026: Public hearings before the USTR
The USTR will review comments and testimony before taking a final decision on the proposed measures.
