India has asked the United States to withdraw its proposed 12.5% tariff on Indian imports under Section 301, arguing that the measure lacks sufficient evidence and economy-specific analysis.
In its July 6 submission to the US Trade Representative (USTR), India said it remains open to consultations and dialogue on any specific concerns related to forced labour.
India argued that USTR failed to identify how the absence of a forced labour import ban constitutes an “unreasonable” practice under Section 301 or demonstrate that it distorts market conditions or harms US industries. It also said Washington had failed to demonstrate that India’s regulatory framework causes any measurable harm to US industry.
The proposed tariff has not been finalised. USTR held public hearings on July 7, and will take a final decision after reviewing stakeholder comments and testimony.
The proposal follows USTR’s Section 301 investigation into 60 economies over their failure to prohibit imports of goods produced with forced labour.
On June 3, USTR proposed a 10% tariff on imports from Canada, Ecuador, the European Union, Indonesia, Mexico and Pakistan, and a 12.5% tariff on imports from 48 other economies, including India and China.
Until USTR issues its final decision, the proposed 12.5% tariff remains a potential trade risk rather than an imposed duty.
Bharat Tex Special Report 2026 
