- July 11, 2026
‘No Unilateral Measures’: India Urges US To Reconsider 12.5% Tariff Amid Trade Deal Push
Last Updated:
India flagged inconsistencies in the US Section 301 investigation over forced labour concerns, which proposed a 12.5% tariff on 54 countries, including India and China.
India and the US have been negotiating a bilateral trade agreement for more than a year. (Representational Image)
India has urged the United States Trade Representative (USTR) to reconsider its 12.5% tariff, asserting that trade issues should be resolved through bilateral negotiations rather than unilateral measures amid disagreements over a US investigation into forced labour concerns.
The matter concerns two USTR Section 301 investigations launched in March, encompassing 60 countries, including India, over allegations of forced labour and excess industrial capacity. On June 3, the USTR issued its findings in the forced labour investigation and proposed additional tariffs on imports from these economies.
The proposal included a 10% tariff on imports from Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, and a 12.5% tariff on imports from 54 countries, including India and China. The measure has not been finalised so far.
India’s Joint Secretary in the Department of Commerce, Brij Mohan Mishra, flagged inconsistencies in the investigation during a public hearing, saying India takes the elimination of forced labour similarly as a constitutional obligation and international law, according to a written transcript of the hearing on July 8.
He argued that the USTR had not satisfied the relevant legal standards under Section 301(d) of the Trade Act. A mere absence of a forced labour import prohibition without evidentiary basis of other statutory requirements cannot be construed as unreasonable under Section 301, he added.
India Says US Didn’t Provide Rationale For Tariffs
Mishra said the USTR probe did not provide a rationale for countrywide tariffs and clubbing 46 countries into a single category, according to the written transcript of the hearing on the USTR website. India also questioned the methodology of the probe, saying it relies on broad data and did not provide any sector or country-specific evidence.
“In conclusion, it is submitted that the USTR reconsider the imposition of tariff in light of the identified inconsistencies in the report in the Federal Register notice. We ask any trade problems be addressed within the framework of the India-US bilateral trade negotiation, not through unilateral measures such as this investigation,” he said, adding that India was willing to engage constructively with the USTR on any specific concern.
Meanwhile, Shreyans Gupta, First Secretary in the Embassy of India in Washington, DC, also objected to the USTR’s observations on behalf of the Agricultural and Processed Food Products Export Development Authority (APEDA).
Gupta opposed the USTR observations on the import of rice allegedly made with forced labour into India and the alleged impact of such imports in distorting the competitive conditions for the export and domestic sale of rice produced in the US. He said there were regulatory checks in place that prevent exports from India of imported rice that have been produced with forced labour.
“For these reasons, the present investigation against India may be rescinded without prejudice,” Gupta said requesting exemption for Indian rice from the proposed duty if the proceedings continue.
FICCI Expresses Concern Over US Tariffs
The Federation of Indian Chambers of Commerce and Industry (FICCI) also submitted that the proposed additional tariff deserves reconsideration. “An additional tariff will increase costs not only for Indian exporters, but also for US manufacturers, importers, retailers, and ultimately, American consumers,” it said.
It urges that the proposed additional tariffs be reconsidered in light of India’s legal and regulatory safeguards, the extensive compliance mechanisms adopted by Indian industry, and the potential implications for legitimate trade and resilient US-India supply chains.
This came as the US and India have been negotiating a bilateral trade agreement for more than 18 months aimed at expanding market access, reducing tariff barriers and strengthening economic cooperation.
(with agency inputs)
About the Author
Aveek Banerjee is a Senior Sub Editor at News18. Based in Noida with a Master’s in Global Studies, Aveek has more than three years of experience in digital media and news curation, specialising in int…Read More
Read More
