By Admin 
India has told America that trade related issues between the two countries should be resolved through mutual dialogue and bilateral trade negotiations instead of unilateral decisions. India has appealed to the US Trade Representative (USTR) to reconsider the proposed 12.5 percent additional tariff. India says that the Section 301 investigation conducted on issues related to forced labor has many shortcomings and shortcomings.
During the public hearing organized in this matter, Joint Secretary of the Commercial Department, Brij Mohan Mishra said that India considers it as its legal and international responsibility to eliminate forced labour. India takes this matter very seriously and respects international laws and principles.
Brij Mohan Mishra said that India wants to register its concern over the USTR report and the conclusions drawn against India. According to him, USTR has not met the legal standards required under Section 301(d) of the Trade Act. Merely stating that there is no ban on import of products made using forced labor in a country cannot be considered as sufficient evidence and cannot be termed as unfair trade practice under Section 301.
Written report of the hearing held on July 8, which was later published on the USTR website. According to him, India said that no clear basis has been given for imposing additional tariff on the entire country. India also says that USTR has put 46 different economies in the same category, while the circumstances of every country are different.
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USTR’s Section 301 Investigation Report
USTR’s Section 301 investigation report alleges that many countries lack effective enforcement and prevention of the import of goods made from forced labor. India opposed this conclusion, saying that this investigation is based on examples of some selected countries and comprehensive trade data, while no concrete evidence has been presented against any particular country or industry. India says that the report assumes that products related to forced labor are reaching America from the countries pointed out, whereas there is no proper evidence to support this.
India specifically said that in its case there is no strong evidence to prove that American industries are being harmed due to India’s policy or Indian products are being unfairly benefited.
India appealed to USTR
India appealed to USTR to reconsider the proposed tariffs in view of the shortcomings present in the report. India says any trade dispute should be resolved within the framework of India-US bilateral trade negotiations and not through such unilateral investigations and tariffs. India also said that it is ready for constructive dialogue and consultation with the US on any specific concerns. Shreyans Gupta, First Secretary at the Indian Embassy in Washington, also spoke on behalf of the Agricultural and Processed Food Products Export Development Authority (APEDA). He objected to USTR’s comment that rice produced with forced labor is imported into India and this harms American rice producers.
Import of rice in India
Shreyans Gupta, First Secretary in the Indian Embassy, said that rice is imported into India in very limited quantities and this is done only to meet the demand of certain varieties. He said that the total price of rice imported from India is less than three percent of the Indian rice exported to America. He also said that there are strict rules in place in India that prevent the export of rice produced with forced labour. Permission to export rice from India to America is given only to those rice mills and processing units which are registered with the Ministry of Agriculture.
FICCI opposes additional tariffs
FICCI has also opposed this proposed additional tariff. FICCI says that this will put additional economic burden not only on Indian exporters but also on American manufacturers, importers, retailers and ultimately American consumers. FICCI said that imposing additional tariffs will increase the costs of companies that are already following all the rules and standards. The organization said that this proposal should be reconsidered considering India’s legal framework, rules adopted by the industry and strong supply chains of both the countries.
The Confederation of Indian Industry (CII) also said that the proposed 12.5 percent additional tariff is not supported by the available evidence and will not serve the purpose for which it is being introduced. According to CII, the USTR report does not prove that India’s policies are imposing any undue burden on American business.
USTR had started separate investigations
USTR had initiated two separate investigations under Section 301 on March 11 and 12, 2026. A total of 60 economies were examined for issues related to forced labor and excess industrial capacity. On June 3, 2026, USTR released its report. In this report, it was proposed to impose additional tariffs on imports coming from many countries. According to the proposal, 10 percent additional tariff can be imposed on products coming from Canada, Ecuador, European Union, Indonesia, Mexico and Pakistan. There is a proposal to impose additional tariff of 12.5 percent on products coming from 54 other countries including India and China.
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