India has urged the United States to withdraw its proposed 12.5% tariff on Indian imports, arguing that trade disputes should be addressed through bilateral negotiations rather than unilateral measures under the US Trade Representative’s (USTR) Section 301 investigation.
During a public hearing, Brij Mohan Mishra, Joint Secretary in the Department of Commerce, said India had engaged constructively with the US on concerns related to forced labour and called on the USTR to reconsider its findings.
India disputes USTR findings
Mishra said India takes the elimination of forced labour seriously as both a constitutional obligation and an international commitment.
He argued that the USTR had not met the legal standards required under Section 301(d) of the US Trade Act, saying the investigation lacked sufficient country-specific evidence linking India to unfair trade practices.
According to India, the USTR’s methodology relies on broad trade patterns and case studies rather than concrete evidence demonstrating that imports into India involving forced labour are being exported to the US.
Calls for bilateral negotiations
India maintained that any trade concerns should be resolved through the framework of the ongoing India-US bilateral trade negotiations, instead of unilateral tariff measures.
The government also reiterated its willingness to continue consultations and dialogue with the US to address any specific concerns.
APEDA rejects allegations over rice imports
Representing the Agricultural and Processed Food Products Export Development Authority (APEDA), First Secretary Shreyans Gupta rejected allegations that India’s rice trade distorts US markets through imports linked to forced labour.
He noted that India’s rice imports are minimal and cater only to niche demand, accounting for less than 3% of the value of rice exported from India to the United States.
Gupta also said strict regulatory checks prevent imported rice produced with forced labour from being exported from India.
Industry bodies oppose tariff proposal
Industry bodies FICCI and CII also urged the US to reconsider the proposed tariff, warning that higher duties would increase costs for businesses and consumers in both countries while disrupting resilient India-US supply chains.
They argued that India’s existing legal safeguards and compliance mechanisms do not justify the additional tariff.
Background
The USTR launched Section 301 investigations in March 2026 covering 60 economies over concerns related to forced labour and industrial overcapacity.
In June, it proposed an additional 12.5% tariff on imports from 54 economies, including India and China, while recommending a 10% tariff on imports from countries such as Canada, the European Union, Indonesia, Mexico and Pakistan.
The proposal has not yet been finalised, with the USTR currently reviewing public comments before making a final decision.
