Commerce ministry officials, industry chamber representatives to attend hearings, India says 12.5% tariffs should be reconsidered.

- Updated Jul 8, 2026 11:14 AM IST
Indian representatives to attend the public hearings by US International Trade CommissionIndia’s
representatives including senior commerce ministry officials and
spokespersons from several industry chambers will attend the public
hearings on July 8 by the US government on Section 301 investigations.
The investigations by the office of the US Trade Representative starting
in March are now seen as one of the key stumbling blocks in the
bilateral trade deal between the two countries.
India has submitted that the proposed 12.5% tariff should be reconsidered.
Joint secretary in the department of commerce Brij Mohan as well as
representatives from FICCI, CII and APEDA are scheduled to attend the
public hearings by US International Trade Commission in Washington DC on
Wednesday for the Section 301 investigations launched against on
production and import of goods using forced labour against nearly 60
countries.
MUST READ | Labour law reform: Job seekers win big as central code mandates transparent, written hiring terms
US International Trade Commission is holding public hearings from July 7 to 9 on the investigations and the proposed tariffs.
In its response to the investigation, India’s department of commerce has
said that in view of the claims advanced, the identified gaps and lack
of a sufficient basis, India requests the US to reconsider the proposed
imposition of tariffs against India. India remains willing to engage
constructively with the USTR through consultation and dialogue on any
specific concern.
“India maintains that forced labour in global supply chains is best
addressed through a combination of domestic criminal and labour‑law
enforcement and adequate due diligence frameworks which also provide for
risk mitigation and remedial mechanisms,” India has further contended.
Industry bodies including the Automotive Component Manufacturers
Association of India (ACMA), CII, FICCI, All India Spice Exporters Forum
and Seafood Exporters Association of India have also submitted their
responses to the investigation.
DON'T MISS | BT Explainer | The Great salary reset: How labour codes are quietly rewriting India Inc's paychecks
“The absence of a forced labour importation ban in India does not
constitute a policy measure that implicitly or explicitly encourages or
facilitates the importation and use of forced labour goods,” FICCI has
submitted, adding that the proposed additional tariffs be reconsidered
in light of India's legal and regulatory safeguards, the extensive
compliance mechanisms adopted by Indian industry, and the potential
implications for legitimate trade and resilient U.S.-India supply
chains.
CII has submitted that the proposed 12.5% additional duty is not warranted, is based on factually
inaccurate assessments, and would penalise compliant industry without advancing the stated policy goal.
ACMA has also sought relief and said that imports from India should not
be subject to any additional tariffs under this investigation; an
exemption should be granted for auto-components given its critical role
in the US supply chain.
SEAI has also similarly sought relief noting that India is the largest
single supplier of frozen shrimp to the US and an additional 12.5% duty
on Indian frozen shrimp would reduce supply and increase costs for US
importers and consumers.
MUST READ | US targets India's $6 billion auto component exports with twin probes into labour practices, overcapacity
The USTR had launched two separate Section 301 investigations on March
11 and 12, 2026 against 60 countries including India on charges related
to forced labour and excess industrial capacity. On June 3, it had
released a report on the forced labour investigation and proposed
additional tariffs on imports from 54 economies.
Meanwhile, India and the US have continued discussions on finalising the
first tranche of the proposed bilateral trade deal but seem to have
made not reached full consensus despite both countries stating that it
has been nearly completed. Most recently, USTR Jamieson Greer also
visited India and held meetings with Commerce and Industry Minister
Piyush Goyal on June 23 and 24.
Along with the proposed tariffs as part of the ongoing investigations,
India also remains concerned about the competitive advantage in terms of
tariffs that it will receive from the US after the US Supreme Court
struck down the reciprocal tariffs.
No comments:
Post a Comment