India has urged the United States to address trade-related concerns through bilateral negotiations instead of unilateral action, calling on the Office of the United States Trade Representative (USTR) to review its proposal to impose a 12.5 per cent tariff on imports from India under the ongoing Section 301 investigation into forced labour concerns. During a public hearing, Brij Mohan Mishra, Joint Secretary in the Department of Commerce, argued that India’s continued engagement on issues related to forced labour should be taken into account before any tariff decision is made.
“India would like to highlight its concerns with the USTR’s report and findings against India,” he said.
India maintained that eliminating forced labour is both a constitutional commitment and an obligation under international law, and said the USTR’s findings do not justify the proposed countrywide tariff.
According to the written transcript of the July 8 hearing, later published on the USTR website, India argued that the investigation does not satisfy the legal requirements laid down under Section 301(d) of the US Trade Act.
The government stated that the absence of a blanket prohibition on imports allegedly produced using forced labour cannot automatically be considered an unreasonable trade practice without adequate supporting evidence.
Officials also criticised the USTR’s methodology, saying it groups 46 economies, including India, into a single category without providing country-specific justification.
India further argued that the report relies on broad trade trends and a limited number of case studies rather than concrete evidence linking imports into India with exports to the United States involving forced labour.
The submission also stated that there is insufficient evidence to conclude that India’s current policy framework gives domestic exporters an unfair competitive advantage at the expense of American industries.
“In conclusion, it is submitted that the USTR reconsider the imposition of tariffs in light of the identified inconsistencies in the report in the Federal Register notice. We ask any trade problems be addressed within the framework of the India-US bilateral trade negotiation, not through unilateral measures such as this investigation,” he added.
India also reiterated that it remains willing to engage with the USTR through dialogue and consultations to address any specific concerns.
APEDA Defends India’s Rice Trade Practices
Representing the Agricultural and Processed Food Products Export Development Authority (APEDA), Shreyans Gupta, First Secretary at the Embassy of India in Washington, DC, challenged the USTR’s observations regarding rice imports allegedly produced with forced labour.
Gupta argued that India’s rice imports are minimal and are intended only to meet demand for select niche varieties. He pointed out that the value of rice imported into India amounts to less than three per cent of the value of rice exported from India to the United States.
He also highlighted the regulatory framework governing rice exports.
“For these reasons, the present investigation against India may be rescinded without prejudice,” Gupta said requesting exemption for Indian rice from the proposed duty if the proceedings continue.
According to the submission, only rice processed at mills and facilities registered with the agriculture ministry is eligible for export to the US, ensuring regulatory oversight.
Industry Bodies Warn Against Higher Tariffs
Leading industry organisations also urged the USTR to reconsider the proposed tariff. Industry body FICCI argued that imposing additional duties would not only affect Indian exporters but also increase costs across the US supply chain.
“An additional tariff will increase costs not only for Indian exporters, but also for US manufacturers, importers, retailers, and ultimately, American consumers,” the chamber said adding higher tariffs will raise costs for businesses that already follow compliance standards.
FICCI further said the proposal should be reviewed in view of India’s regulatory safeguards, industry compliance measures and the potential impact on resilient India-US supply chains.
The Confederation of Indian Industry (CII) also opposed the proposal, stating that the additional 12.5 per cent tariff is not supported by the evidence presented in the investigation and is unlikely to achieve its intended objective.
The USTR initiated two separate Section 301 investigations in March 2026 covering 60 economies over concerns relating to forced labour and excess industrial capacity. On June 3, it proposed additional tariffs, including 10 per cent on imports from six economies and 12.5 per cent on imports from 54 economies, including India and China.
(With PTI inputs)
