India has responded cautiously to the United States’ proposal to impose an additional 10–12.5% tariff on imports from several countries, including India, under Section 301 of the U.S. Trade Act. The proposal comes at a sensitive time, as New Delhi and Washington are in the final stages of negotiating a bilateral trade agreement. According to reports, India’s Commerce Ministry emphasized that the proposed tariffs are still under consideration and remain subject to a public consultation process in the United States before any final decision is made.
Indian officials have indicated that discussions with the U.S. are continuing and that both sides remain committed to advancing the trade pact. Commerce Minister Piyush Goyal recently stated that negotiations are largely complete, with only minor details left to be finalized. However, the tariff proposal has introduced fresh uncertainty into the talks, as India is expected to seek relief from any additional duties that could affect its exports and competitiveness in the U.S. market.
The proposed tariffs stem from a U.S. investigation into alleged unfair trade practices and concerns related to forced-labour-linked supply chains. The U.S. Trade Representative has argued that certain countries, including India, have not done enough to prevent such imports from entering their markets. India, however, has maintained engagement with U.S. authorities on the issue and is expected to present its position during the consultation process.
Trade experts believe the move could complicate—but not necessarily derail—the broader India-U.S. trade negotiations. Analysts suggest that both countries still have strong economic incentives to conclude the agreement, making it likely that tariff issues and the trade pact will continue to be negotiated in parallel.
