India Asks US to Drop Proposed 12.5% Tariff
India has urged the United States to withdraw a proposed additional 12.5% tariff on Indian goods, arguing that the measure lacks sufficient evidence and legal justification. New Delhi has called for the concerns to be addressed through bilateral trade negotiations rather than unilateral duties.
India Opposes Proposed US Tariff
The proposed tariff emerged from a US Trade Representative investigation under Section 301 of American trade law concerning imports allegedly linked to forced labour.
India told the USTR that the investigation had not established sufficient evidence to justify imposing additional tariffs across all Indian exports.
New Delhi also objected to India being grouped with dozens of other economies without a detailed country-specific assessment of its laws, enforcement mechanisms or supply chains.
India Questions Forced Labour Findings
The Indian government said it had engaged sincerely with the United States during the investigation and responded to concerns regarding forced labour.
It argued that the US findings failed to demonstrate a direct connection between India’s import policies and any adverse impact on American industries or workers.
India also maintained that the absence of a particular import restriction could not automatically be treated as evidence that products made using forced labour were entering the country.
India Pushes for Bilateral Trade Talks
New Delhi has expressed its willingness to continue discussions with Washington and resolve specific concerns through consultations.
The proposed duty could complicate ongoing negotiations over a broader India-US Bilateral Trade Agreement. Both countries have been working to settle tariff, market-access and regulatory issues affecting goods and services.
Several American businesses have also reportedly warned that additional tariffs on imports could increase manufacturing costs and disrupt supply chains in the United States.
