India Urges US to Reconsider Proposed Tariffs Amid Trade Concerns

India has urged the United States to engage in bilateral negotiations regarding proposed tariffs on imports, emphasizing the importance of addressing trade concerns through dialogue rather than unilateral actions. During a public hearing, officials highlighted India's commitment to eliminating forced labour and criticized the USTR's findings as lacking sufficient evidence. Additionally, industry bodies have expressed concerns that the proposed tariffs could raise costs across the US supply chain. The article delves into India's defense of its rice trade practices and the broader implications of the USTR's tariff proposal.

By Narendra Chaudhary Jul 11, 2026, 16:49 IST

India's Call for Bilateral Negotiations

India has requested the United States to resolve trade issues through discussions rather than unilateral actions. The country has urged the Office of the United States Trade Representative (USTR) to reassess its plan to impose a 12.5% tariff on Indian imports as part of an ongoing Section 301 investigation concerning forced labour allegations. During a public hearing, Brij Mohan Mishra, Joint Secretary in the Department of Commerce, emphasized that India's ongoing efforts to tackle forced labour should be considered before any tariff decisions are finalized. He stated, 'India wishes to express its concerns regarding the USTR's report and findings against our nation.'

India asserted that the elimination of forced labour is a constitutional commitment and an international obligation, arguing that the USTR's findings do not warrant the proposed tariffs. According to the transcript from the July 8 hearing, which was later made available on the USTR's website, India contended that the investigation fails to meet the legal standards outlined in Section 301(d) of the US Trade Act.

The government pointed out that the lack of a comprehensive ban on imports allegedly produced with forced labour cannot be deemed an unreasonable trade practice without sufficient evidence. Officials criticized the USTR's approach, noting that it categorizes 46 economies, including India, without providing specific justifications for each country.

India further claimed that the report is based on broad trade trends and a limited number of case studies, lacking concrete evidence linking imports into India with forced labour in exports to the United States. The submission also indicated that there is inadequate evidence to suggest that India's current policies provide domestic exporters with an unfair competitive edge over American industries.

In conclusion, India urged the USTR to reconsider the proposed tariffs in light of the inconsistencies identified in the report. The country requested that any trade issues be resolved through the framework of India-US bilateral trade negotiations rather than through unilateral actions like this investigation. India reiterated its willingness to engage in dialogue and consultations with the USTR to address specific concerns.

APEDA's Defense of India's Rice Trade

Shreyans Gupta, First Secretary at the Embassy of India in Washington, DC, representing the Agricultural and Processed Food Products Export Development Authority (APEDA), contested the USTR's claims regarding rice imports allegedly produced with forced labour. Gupta pointed out that India's rice imports are minimal and primarily aimed at fulfilling demand for specific niche varieties. He noted that the value of rice imported into India constitutes less than three percent of the value of rice exported from India to the United States.

He also emphasized the regulatory framework governing rice exports, stating, 'For these reasons, the current investigation against India should be dismissed without prejudice.' Gupta requested an exemption for Indian rice from the proposed tariff if the proceedings continue, highlighting that only rice processed at mills registered with the agriculture ministry is eligible for export to the US, ensuring regulatory oversight.

Industry Concerns Over Proposed Tariffs

Prominent industry organizations have also called on the USTR to rethink the proposed tariff. The Federation of Indian Chambers of Commerce and Industry (FICCI) warned that imposing additional duties would not only impact Indian exporters but also escalate costs throughout the US supply chain. 'An additional tariff will raise costs not just for Indian exporters but also for US manufacturers, importers, retailers, and ultimately, American consumers,' the chamber stated, adding that higher tariffs would burden businesses that already comply with standards.

FICCI further urged a review of the proposal in light of India's regulatory safeguards, industry compliance measures, and the potential effects on resilient India-US supply chains. The Confederation of Indian Industry (CII) also opposed the tariff proposal, asserting that the additional 12.5% tariff lacks support from the evidence presented in the investigation and is unlikely to achieve its intended goals.

The USTR initiated two separate Section 301 investigations in March 2026, covering 60 economies due to concerns about forced labour and excess industrial capacity. On June 3, it proposed additional tariffs, including a 10% tariff on imports from six economies and a 12.5% tariff on imports from 54 economies, including India and China.