India continues talks with US over proposed tariffs as trade deal negotiations advance

US President Donald Trump (left) and Prime Minister Narendra Modi. File Pic

India is continuing discussions with the United States regarding proposed tariff measures under Section 301 of the US Trade Act of 1974, while simultaneously working towards finalising a bilateral trade framework agreement with Washington, the Ministry of Commerce and Industry said on Wednesday.

The ministry's clarification comes after the Office of the United States Trade Representative (USTR) concluded investigations involving 60 economies, including India, over measures related to imports of goods allegedly produced through forced labour.

Following the investigations, the USTR proposed additional tariffs on imports from the economies covered under the proceedings. However, the proposed measures have not yet been finalised and remain subject to a public consultation process.

Proposed tariffs still under consultation process

According to the Ministry of Commerce and Industry, the USTR has invited stakeholders to participate in the consultation process before any final decision is taken.

Interested parties can submit requests to participate in public hearings until June 22, 2026, while written comments may be filed until July 6, 2026. The public hearings are scheduled to be held on July 7, 2026.

The USTR is expected to review all submissions, comments and testimony received during the consultation process before determining whether the proposed tariff measures should be implemented.

The ministry emphasised that the process remains ongoing and no final action has been announced by the United States.

Certain products exempt from proposed measures

The ministry noted that products already covered under Section 232 tariffs, along with certain other categories of goods, have been excluded from the proposed Section 301 tariff measures.

In addition, the USTR has proposed a special mechanism for textile and apparel products. The proposal would allow a specified volume of imports from selected economies to enter the US market at reduced tariff rates, potentially providing some relief to exporters in the sector.

The details of the mechanism are expected to be further examined during the consultation process.

India and US continue trade framework negotiations

Alongside discussions on the Section 301 proceedings, India and the United States are continuing negotiations to finalise a bilateral trade framework agreement announced earlier this year.

The Ministry of Commerce and Industry said the talks are being conducted in line with the framework announced on February 2, 2026, and the joint statement issued by both countries on February 7, 2026.

"India remains engaged with the US on the matter as part of the Section 301 proceedings," the ministry said.

Officials from both countries have held several rounds of discussions in recent months as they seek to advance the proposed trade arrangement and address outstanding issues.

Focus on market access and supply chain cooperation

The ongoing negotiations are part of broader efforts by New Delhi and Washington to strengthen economic ties and resolve trade-related concerns through dialogue.

The proposed framework is expected to cover areas such as market access, tariff issues, non-tariff barriers, supply chain resilience and investment cooperation.

Both sides are also working towards an early harvest arrangement that could deliver limited trade outcomes ahead of a more comprehensive agreement.

The ministry reiterated that India will continue engaging with US authorities through the ongoing consultation process while pursuing the broader objective of concluding the bilateral trade framework agreement and expanding economic cooperation between the two countries.