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The US Trade Representative has proposed a 12.5% tariff on exports from 54 countries, including India and China, citing their failure to prohibit goods made with forced labor. This move comes as US officials are in India discussing a framework agreement. The ustr's report also addresses excess capacity in several countries, potentially leading to further tariffs.

The ustr released the outcome of 60 investigations conducted under Section 301, identifying India among 54 economies that, according to its assessment, do not have adequate measures in place to prohibit or effectively prevent the import of goods allegedly produced using forced labour.

The US Trade Representative has proposed additional tariffs on goods from 54 economies, including India, over concerns about forced labor in supply chains. This move, stemming from a Section 301 investigation, could impact India's exports, particularly those relying on Chinese inputs, despite existing domestic prohibitions on forced labor.

The Union government is engaging with the US concerning a Section 301 investigation into forced labor and industrial capacity. The US Trade Representative has identified India among countries with inadequate measures against goods made with forced labor, proposing potential tariffs. This occurs amidst ongoing bilateral trade deal discussions.

India and the US are nearing a trade agreement, with discussions extending beyond goods to encompass non-tariff measures, customs, and economic security. This comes as the US proposed additional tariffs on several countries, including India, over forced labor concerns. Both nations express optimism about finalizing a mutually beneficial deal soon.

India and the US are making rapid progress towards resolving the remaining issues in their proposed interim trade arrangement, with both countries expected to implement the first phase of the agreement by the middle of next month, Goyal said.

The rupee weakened by 40 paise to 95.76 against the US dollar due to proposed US tariffs, rising crude oil prices, and foreign fund outflows. Escalating geopolitical tensions in West Asia also contributed to the decline, impacting investor sentiment. Market participants now await the Reserve Bank of India's policy decision for further cues.

Indian exporters are closely monitoring US trade investigations and bilateral deal talks, expecting an advantage over rivals. While not overly concerned about a proposed 12.5% tariff on 54 countries, they are apprehensive about the same levy on China. Exporters are confident that ongoing negotiations will lead to mutually beneficial outcomes, especially for sectors like footwear and leather.

Momentum towards a deal has strengthened in recent weeks. US Ambassador to India Sergio Gor said the negotiations were nearing completion, with only a limited number of issues still unresolved. Commerce and Industry Minister Piyush Goyal has similarly indicated that most matters have been settled, with discussions now centred on finalising the remaining details before the first phase of the agreement is unveiled.

India and the US are nearing the finalization of an interim trade agreement, with the first tranche expected to be executed by mid-July. Commerce and Industry Minister Piyush Goyal stated that negotiations are progressing rapidly to close all outstanding issues. A high-level American delegation is scheduled to visit India later this month.

India and the US are nearing the finalization of a proposed trade agreement, with US envoy Sergio Gor expressing optimism for a resolution within weeks. Top negotiators are currently in New Delhi to iron out the remaining details of the interim pact. Gor also clarified that recent US tariffs were not specifically targeted at India, affecting numerous global economies.

US President Donald Trump expressed optimism about reaching a trade agreement with India soon, stating that the previous trade imbalance has now reversed. Both nations have been engaged in constructive negotiations, aiming to finalize an interim trade pact while broader discussions continue. Despite ongoing talks, concerns remain regarding potential US tariffs on imports from several economies, including India.

India and the US have concluded "positive and constructive" trade talks, signaling progress towards a bilateral agreement. Discussions covered goods, non-tariff measures, and economic security. Both nations reaffirmed their commitment to advancing the pact, with a US envoy noting only a small percentage of issues remain unresolved, suggesting an imminent finalization.

The Section 301 probe launched by the US in March 2026 is a known variable in India’s trade deal talks with America. Yet, the proposal to impose duties on around 60 countries assumes significance at a time when a delegation from the US is in India to finalise terms of the India-US trade deal.

India is pushing for preferential tariffs and guarantees against future hikes in ongoing trade talks with the US. New Delhi seeks clarity on proposed US tariffs linked to forced labor and excess industrial capacity concerns. Both nations aim to finalize an interim trade agreement, with discussions gaining momentum after recent high-level meetings.

Senior officials from India and the US are meeting in New Delhi to finalize an interim trade agreement and advance broader bilateral trade talks. Discussions will cover market access, customs, and investment, with potential recalibration of the deal due to recent US tariff changes. The agreement aims to boost trade and economic security between the two nations.