India Urges USTR To Reconsider Proposed 12.5% Tariff, Seeks Bilateral Resolution On Trade Issues
· Free Press Journal
India has urged the United States Trade Representative (USTR) to reconsider its proposal to impose an additional 12.5% tariff on Indian goods, arguing that the findings of the Section 301 investigation into forced labour concerns lack adequate evidence and legal justification.
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Speaking at a public hearing, Joint Secretary in the Department of Commerce Brij Mohan Mishra said India takes the elimination of forced labour seriously as a constitutional responsibility and an international obligation.
However, he raised concerns over the methodology and conclusions of the USTR investigation.
Mishra said the USTR had not met the required legal standards under Section 301 of the US Trade Act, arguing that the absence of a specific forced labour import ban cannot alone be considered an unfair trade practice without supporting evidence.
India Should Avoid Early Trade Concessions To US, Adopt Patient Strategy: SBI ReportAccording to India’s submission, the USTR determination does not provide sufficient justification for imposing countrywide tariffs and places 46 economies, including India, under a common category despite differences in legal frameworks and trade practices.
India argued that the investigation relied on broad trade patterns and limited case studies rather than country-specific evidence establishing direct links between imports and forced labour practices. The government said there was insufficient proof that India’s policy framework provided any unfair competitive advantage or harmed US industries.
Mishra requested the USTR to reconsider the proposed tariff and resolve trade concerns through the existing India-US bilateral trade negotiation framework rather than unilateral measures. He added that India remains committed to engaging constructively with US authorities through consultations and dialogue.
India Challenges US Tariff Plan Over Forced Labour Claims, Seeks Fair ApproachThe Agricultural and Processed Food Products Export Development Authority (APEDA) also raised objections to findings related to rice imports. Representing APEDA, Shreyans Gupta from the Indian Embassy in Washington said India’s rice imports are limited and mainly cater to specific varieties and niche consumer demand.
He noted that the value of rice imported by India compared with rice exported to the US is less than 3%, while regulatory safeguards ensure that imported rice produced through forced labour does not enter export supply chains.
Gupta said exports of rice from India to the US are permitted only through registered rice mills and processing units approved by the agriculture ministry. He urged that the investigation against Indian rice be withdrawn or that Indian rice exports be exempted from any proposed duties.
Industry bodies also opposed the proposed tariff. The Federation of Indian Chambers of Commerce and Industry (FICCI) said additional duties would increase costs for Indian exporters as well as US manufacturers, importers, retailers and consumers.
FICCI urged reconsideration of the tariff, citing India’s regulatory safeguards, industry compliance mechanisms and the importance of maintaining reliable India-US supply chains.
The Confederation of Indian Industry (CII) also argued that the proposed 12.5% tariff was not supported by the evidence presented and would not achieve the stated policy objectives. It said the USTR report failed to establish that India’s policies imposed any burden on US commerce.