Introduction
India has responded to a proposal by the United States to impose additional tariffs on imports from dozens of countries, including India, over concerns related to forced labour enforcement. The proposed measures come at a time when New Delhi and Washington are simultaneously negotiating a broader trade agreement that officials from both countries say is nearing completion.
What Are The Proposed US Tariffs?
The Office of the United States Trade Representative (USTR) has proposed imposing additional tariffs ranging from 10 percent to 12.5 percent on imports from more than 60 economies.
According to the proposal:
- India could face an additional tariff of 12.5 percent.
- Other countries in the same category include China, Japan, South Korea, Brazil and Switzerland.
- Canada, Mexico, Taiwan and the United Kingdom could face tariffs of 10 percent.
The proposed measures stem from a USTR review under Section 301 of the Trade Act of 1974, which examined whether trading partners adequately prohibit imports made with forced labour.
What Has India Said?
The Indian government clarified that the proposed tariffs are not final and remain subject to public consultation in the United States.
According to the government:
- Requests to participate in public hearings can be submitted until June 22, 2026.
- Written comments can be filed until July 6, 2026.
- Public hearings are scheduled for July 7, 2026.
- The USTR will review submissions before making a final decision.
India stated that it remains actively engaged with the United States as part of the ongoing Section 301 proceedings.
Are The Tariffs Effective Immediately?
No. The proposed tariffs have not been implemented and remain under review. The consultation process allows governments, businesses and stakeholders to provide feedback before any final determination is made. Several products are also excluded from the proposal, including goods already covered under Section 232 tariffs and certain other categories. In addition, a separate mechanism has been proposed for textile and apparel imports that could permit limited quantities of products from selected economies to enter the US market at lower tariff rates.
How Could This Affect India-US Trade Relations?
The tariff proposal comes while India and the United States continue discussions on a broader trade framework announced earlier this year. The Indian government confirmed that negotiations on the trade agreement are continuing in parallel with discussions related to the proposed tariffs. The framework agreement was initially announced in February 2026 as part of efforts to deepen economic cooperation between the two countries.
What Did The US Say About The Trade Deal?
US Ambassador to India Sergio Gor expressed optimism regarding the ongoing negotiations. According to Gor, discussions are nearly complete. “We are 99% there, the last 1% we are working on. We are very optimistic that this will get done. It will be a win-win situation for both the US and India,” he said.
Why Is The US Proposing These Tariffs?
The Trump administration launched investigations into trading partners to assess whether they effectively prohibit imports produced using forced labour. The USTR concluded that many economies had either failed to establish adequate restrictions or had not effectively enforced existing prohibitions. Based on those findings, the agency proposed additional tariffs as a potential enforcement measure.
Conclusion
While India has been included in a proposed US tariff list that could impose an additional 12.5 percent duty on certain imports, the measures are not yet final. The proposal remains under review and is subject to public consultation before any decision is made. At the same time, India and the United States continue negotiations on a broader trade agreement, with officials from both countries indicating that talks are nearing completion.