India has said it remains engaged with the United States regarding proposed new tariffs announced by the US Trade Representative (USTR), even as both countries move closer to finalising a trade agreement.
The proposed tariffs are linked to a US investigation into whether trading partners have taken sufficient action against the import of goods allegedly produced using forced labour.
According to a government release, the proposed tariff measures are not final and will undergo a public consultation process before any decision is taken. The release stated that the USTR will review all comments and testimony before making a final decision and added that India remains engaged with the US on the issue as part of the ongoing Section 301 proceedings.
The proposed tariffs range from 10 per cent to 12.5 per cent.
According to the USTR report released on Wednesday, countries including Canada, Mexico, Taiwan and the United Kingdom would face a 10 per cent tariff for allegedly failing to enforce restrictions on imports linked to forced labour.
A higher tariff of 12.5 per cent has been proposed for several countries, including India, China, Japan, South Korea, Brazil and Switzerland.
However, the tariffs will not take effect immediately and remain subject to public review and consultation.
The release noted that products already covered under Section 232 tariffs, along with certain other goods, have been excluded from the latest tariff proposals.
It also stated that a special mechanism has been proposed for textile and apparel products, under which a specified volume of imports from selected economies may enter the US market at lower tariff rates.
The Trump administration launched investigations under Section 301(b)(1) of the Trade Act of 1974 to examine whether trading partners had taken action against imports of goods produced through forced labour and whether such practices affected US commerce.
While discussions on the tariff proposal continue, India and the United States are also working to finalise a broader trade agreement. The government said both countries remain engaged in negotiations for a framework agreement announced on February 2, 2026, in line with the joint statement released on February 7, 2026.
US Ambassador to India Sergio Gor said the agreement is nearing completion, with both sides working on the final remaining issues.
