India responds to proposed US tariffs as trade pact negotiations continue

India has said it remains engaged with the United States over proposed new tariffs announced by the US Trade Representative (USTR), even as both countries move closer to finalising a long-awaited trade agreement. The proposed tariffs are linked to a US investigation into whether trading partners have taken sufficient action against the import of goods allegedly made using forced labour. According to a government release, the proposed tariff measures are not final and will go through a public consultation process before any decision is taken. Read Full Story The release said the USTR would review all comments and testimony before making a final decision. It added that India remains engaged with the US on the issue as part of the ongoing Section 301 proceedings. Meanwhile, the proposed tariffs range between 10% and 12.5%. According to the USTR report released on Wednesday, countries including Canada, Mexico, Taiwan and the United Kingdom would face a 10% tariff for allegedly failing to enforce restrictions on imports linked to forced labour. A higher tariff of 12.5% has been proposed for several countries, including India, China, Japan, South Korea, Brazil and Switzerland. However, the tariffs will not take effect immediately and remain subject to public review and consultation. The release said that products already covered under Section 232 tariffs, along with certain other goods, have been excluded from the latest tariff proposals. It also said a special mechanism has been proposed for textile and apparel products. Under this arrangement, a specified volume of imports from selected economies may be allowed to enter the US market at lower tariff rates. The Trump administration launched investigations under Section 301(b)(1) of the Trade Act of 1974 to examine whether trading partners had taken action against imports of goods produced through forced labour and whether such practices affected US commerce. The USTR said 54 economies had failed to impose and effectively enforce a forced labour import prohibition. This group includes India, China, Bangladesh, Vietnam, Taiwan, Japan, Qatar, Russia, Saudi Arabia, Singapore, the United Arab Emirates and the United Kingdom, among others. Another six economies, including Canada, the European Union, Indonesia, Mexico, Ecuador and Pakistan, were found not to have effectively enforced such prohibitions. While discussions over the tariff proposal continue, India and the United States are also working to finalise a broader trade agreement. The government said both countries remain engaged in negotiations for a framework agreement announced on February 2, 2026 and in line with the joint statement released on February 7, 2026. US Ambassador to India Sergio Gor expressed confidence that the agreement is nearing completion. He said the two sides had resolved most issues and were now working on the final remaining points. According to Gor, the proposed agreement is expected to be beneficial for both countries. His remarks come as negotiators from India and the US continue discussions aimed at concluding the trade pact in the coming weeks. Ends