India Engages with US Amid Proposed 12.5% Tariffs on Imports
India Reacts To Trump’s New 12.5% Tariffs, Says ‘Engaged With US, Proposed Tariffs Not Final’
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India has responded to US President Donald Trump's proposed 12.5% tariffs targeting 60 economies, including India, citing concerns over forced labor. The Indian government is actively engaged in discussions with the US regarding these tariffs and a broader trade framework agreement.
- 01The proposed tariffs are part of Section 301 of the US Trade Act of 1974, aimed at enforcing restrictions on goods produced with forced labor.
- 02India's Ministry of Commerce confirmed ongoing discussions with the US regarding the tariff measures and a framework agreement announced in February 2026.
- 03A special mechanism for textile and apparel imports has been proposed, allowing certain products to enter the US at lower tariff rates.
- 04The public consultation process for the proposed tariffs is ongoing, with stakeholders able to submit comments until July 6, 2026.
- 05The USTR determined that the actions of the 60 economies, including India, were unreasonable, impacting US commerce.
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India has officially reacted to the proposed 12.5% tariffs by US President Donald Trump, which target 60 economies, including India, due to concerns over forced labor practices. The Indian government stated it is actively engaged with the United States on this issue and is working on finalizing a broader trade framework agreement, as previously announced. The tariffs fall under Section 301 of the US Trade Act of 1974, aimed at enforcing prohibitions on imports produced with forced labor. Notably, a special mechanism for textile and apparel products has been proposed, allowing a specified volume of imports from selected economies to enter the US at lower tariffs. The proposed tariffs are not final and are subject to a public consultation process, which includes opportunities for stakeholders to submit comments and participate in public hearings. The USTR's investigations concluded that the practices of the 60 economies were unreasonable and restrictive to US commerce, prompting these tariff measures.
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The proposed tariffs could affect Indian exporters, particularly in sectors like textiles and apparel, which may face increased costs and reduced competitiveness in the US market.
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