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United States has proposed tariff action against India, after determining that it has failed to impose and enforce prohibitions on the import of goods produced with forced labour.
US President Donald Trump (L) and PM Narendra Modi (R). (Image: News18)
India has reacted to US President Donald Trump’s proposed 12.5 per cent tariffs under Section 301, which target 60 economies, including India, over what Washington describes as a failure to effectively prohibit and enforce restrictions on the import of goods produced with forced labour.
Responding to the move, New Delhi said it “remains engaged” with the United States on the proposed tariff measures and added that discussions on the ongoing trade framework agreement between the two countries are continuing.
“India remains engaged with the U.S. on the matter as a part of Section 301 proceedings. India is also parallelly engaged with the US for finalisation of a framework agreement as was announced on 2nd February 2026 and in accordance with the joint statement released on 7th February 2026,” read Ministry Of Commerce statement.
India responds to proposed tariffs
Reacting to the proposal, the Indian government said it continues to engage with the United States on the issue. According to the government, the USTR has completed investigations involving 60 economies, including India, and has proposed additional tariffs on imports from these economies under Section 301 of the US Trade Act of 1974.
India said products already covered under Section 232 tariffs, along with certain other products, have been excluded from the proposed tariff measures.
The government also noted that a special mechanism has been proposed for textile and apparel products. Under this mechanism, a specified volume of imports from selected economies could be allowed entry into the United States at lower tariff rates. The proposed tariffs are not yet final and remain subject to a public consultation process.
According to the report, stakeholders can submit requests to participate in public hearings until June 22, 2026. Written comments may be filed until July 6, 2026, while public hearings are scheduled for July 7, 2026.
The USTR will review the comments and testimony received during the consultation process before making a final decision on the proposed measures.
12.5% tariff on India
The U.S. Trade Representative has proposed to impose additional duties on all products from the 60 investigated economies. According to the agency, economies that have already adopted, or committed to adopt, forced labour import prohibitions through an “Agreement on Reciprocal Trade” could face an additional 10 per cent tariff.
“For all other economies, the U.S. Trade Representative proposes 12.5% as the rate of additional duty”, the statement read. The move comes after the USTR concluded investigations into measures adopted by these economies to prevent the import of goods.
In a statement issued on Tuesday, the USTR said it had determined under Section 301 of the Trade Act of 1974 that the acts, policies and practices of the 60 economies were “unreasonable and burden or restrict US commerce”.
The proposed action is linked to what the USTR described as a failure by these economies to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
With the consultation process still under way, the proposed tariffs remain under consideration, while discussions between India and the United States continue on both the Section 301 proceedings and the broader framework agreement.
About the Author
Shuddhanta Patra, a seasoned journalist with eight years of experience, serves as Senior Sub‑Editor at CNN News 18. With expertise across national politics, geopolitics, business news, she has influen…Read More
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