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Informist, Wednesday, Jun. 3, 2026

 

--Trade min: US' proposed Section 301 tariffs not yet final 

--Trade min: India remains engaged with US on Section 301 proceedings 

--Trade min: India remains engaged with US on finalisation of trade agreement 

 

NEW DELHI – India remains engaged with the US regarding the latter's Section 301 proceedings, which proposed an additional tariff of 12.5% on all countries, including India, that have failed to impose and effectively prohibit the import of goods produced with forced labour, the commerce ministry said Wednesday. "India is also parallelly engaged with the US for finalisation of a framework (bilateral trade)  agreement," the ministry said. 

 

Earlier in the day, the office of the US Trade Representative issued an order proposing a 12.5?ditional tariff on countries that have used forced labor to produce imported goods. It proosed 10% tariff on countries that have made partial arrangements to prevent production of goods with forced labour. The ministry reiterated that these tariffs are not final and the US Trade Representative will consider the comments and testimony received before taking a final decision on the proposed measures.

 

"The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field," the order quoted said US Trade Representative Ambassador Jamieson Greer as saying. "We will no longer tolerate this disparity." The US Trade Representative is seeking public comments on the proposal for responsive action by Jul. 6.

 

This development comes when the US team is in India for further discussions on the proposed bilateral trade agreement. Earlier this week, a commerce ministry official had said that India will seek an exemption from Washington's Section 301 during the negotiations. In April, India pushed back against the US Section 301 investigations, rejecting allegations of unfair trade practices and seeking the immediate termination of the probes. In its submission to the US Trade Representative, India had said it "firmly denies all allegations made in the initiation notice" related to claims of excess structural capacity and production in manufacturing sectors.

 

Section 301 is the US' tool to combat unfair trade practices, authorising it to impose tariffs or other import restrictions on other nations, withdraw or suspend trade agreement concessions, and enter into a binding agreement with the foreign government to either cease the conduct in question or compensate the US. Currently, India faces a 10?seline tariff from the US. With the proposed 12.5% tariff under Section 301, India now faces slightly higher risks to its exports. 

 

The US is India's top export destination. In FY26, India's exports to the US rose to $87.31 billion from $86.51 billion a year ago, and imports increased to $52.97 billion from $45.63 billion a year ago.  End

 

US$1 = INR 95.79

 

Reported by Priyasmita Dutta

Edited by Akul Nishant Akhoury

 

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