US Trade Act
See relief on US Section 301 after ban on forced labour goods import, says senior government official
This story was originally published at 19:07 IST on 15 July 2026
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NEW DELHI – After the government's proposal to ban the import of goods produced using forced labour, India expects some relief from the US' Section 301 proceedings that proposed an additional tariff of 12.5% on countries, including India, that have failed to prohibit import of goods produced with forced labour, a senior government official said Wednesday. On Tuesday, the commerce ministry notified that the import of goods produced or manufactured, wholly or in part, through the use of forced labour will be prohibited.
Apart from the Section 301 proceedings, India also risks facing higher tariffs if the US Congress passes a bipartisan sanctions bill targetting Russia and its trading partners. On Jul. 14, a bipartisan group of US senators introduced a revised Russia sanctions bill that would allow Trump to impose tariffs of up to 100% imports from the world's five largest buyers of Russian oil and natural gas, including India and China.
The official said the trade deal negotiations between India and the US will address the bill-related issues. "The discussions on the US' bipartisan bill have not come up in India-US deal negotiations yet," the official added.
India and the US had on Feb. 7 issued a joint statement, agreeing on a framework for an interim agreement for mutually beneficial trade, but are yet to finalise the first phase of the trade agreement. A US team visited New Delhi in early June and held "constructive and positive discussions" with the Indian side on a wide range of issues, including merchandise trade and non-tariff measures and concluding the trade agreement. On Jun. 5, Commerce Minister Piyush Goyal said he expected India and the US to close the first tranche of the proposed trade agreement by mid-July. End
US$1 = INR 96.26
Reported by Pratiksha
Edited by Deepshikha Bhardwaj
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