India Engaged With Trump Administration, Says Commerce Ministry As USTR Concludes Section 301 Tariff Probe

New Delhi, Jun 3 (KNN) With the United States Trade Representative (USTR) concluding its probe against 60 economies, including India, over measures that allegedly restrict imports of American goods, the government on Wednesday said that it remains engaged with the Trump administration on the matter. 

The Ministry headed by Piyush Goyal said that India is also engaged with the US for finalisation of a framework agreement on bilateral trade as announced in February this year.

As a result of its investigation, the USTR has proposed imposing additional tariffs on imports from these economies under Section 301 of the US Trade Act of 1974.

What the USTR Has Proposed

The proposed tariffs target a broad range of imports from 60 economies under scrutiny. Products already covered under Section 232 tariffs — including steel, aluminium, and certain industrial goods — as well as select other items, have been excluded from the current proposals.

A special mechanism has also been suggested for textile and apparel products, which could allow a defined volume of imports from selected economies to enter the US at preferential, lower tariff rates. 

This comes as the USTR, which launched two separate Section 301 investigations on March 11 and 12, 2026, covering 60 economies over concerns related to forced labour and excess industrial capacity, has issued its findings in the forced labour probe and proposed additional tariffs on 54 economies.

Under the proposed structure, imports from Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan would attract a 10 per cent duty, while those from 48 other economies — including India and China — would face a 12.5 per cent tariff. Lower duties have been indicated for textiles, though specific rates are yet to be finalised.

Importantly, the investigation does not allege that Indian exports are produced using forced labour. Rather, the USTR’s concern is whether India — along with other targeted economies — has adequate domestic safeguards to prevent the import of goods made with forced labour in third countries, most notably China.

Process and Timeline

The proposed tariffs are not yet final, with the USTR initiating a public consultation process. Key deadlines are June 22 (hearing requests), July 6 (written comments), and July 7 (hearings). 

A decision is expected in late June or July 2026, possibly before the July 24 expiry of temporary Section 122 tariffs (10 per cent), after which the new tariffs could take effect immediately.

(KNN Bureau)