India has said it remains engaged with the United States over a proposed additional tariff of 12.5 per cent on imports, amid ongoing negotiations on a broader bilateral trade agreement. The response comes after the United States Trade Representative (USTR) floated a proposal to impose new tariffs on several trading partners over alleged failures to enforce restrictions on goods linked to forced labour.

According to an official government statement, the proposed tariffs are not yet final and are currently undergoing a public consultation process. Stakeholders have been given until June 22, 2026, to request participation in public hearings, while written submissions can be filed until July 6, 2026. Public hearings are scheduled for July 7, 2026, after which the USTR will review all submissions before arriving at a final decision. India confirmed that it is actively participating in these Section 301 proceedings.

The proposed measures reportedly include tariff increases ranging from 10 per cent to 12.5 per cent across multiple countries. Under the current proposal, economies such as China, Japan, India, South Korea, Brazil and Switzerland could face an additional 12.5 per cent tariff, while countries including Canada, Mexico, Taiwan and the United Kingdom may be subject to a 10 per cent levy. The US has cited concerns over enforcement of forced labour import prohibitions as the basis for the action.

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The USTR has also stated that 54 economies have failed to adequately enforce bans on imports linked to forced labour, while six others have been deemed insufficient in enforcement. The list includes a wide range of major global trading partners, reflecting the broad scope of the proposed trade measures. However, the tariffs will not take effect immediately and remain subject to review following the consultation process.

The Indian government has emphasised that discussions with the US are ongoing, including parallel negotiations on a broader framework trade agreement announced earlier in 2026. Officials noted that certain categories of goods covered under Section 232 tariffs, along with select other products, may be excluded from the proposed tariff structure. A separate mechanism has also been suggested for textile and apparel exports that could allow limited volumes to enter the US market at lower duties.

Meanwhile, diplomatic engagement between the two countries continues alongside the trade discussions. US Ambassador to India Sergio Gor recently stated that negotiations on the bilateral trade deal are “99 per cent complete,” expressing optimism that the remaining issues will be resolved soon. Both sides have described the ongoing talks as constructive, with expectations that a final agreement could significantly shape future economic relations between the two countries.

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