10% US tariff is Section 301 enforcement action, discussions on trade agreement with US continuing: MEA
New Delhi, July 25
India on Friday stated that it has taken note of US President Donald Trump's latest announcement regarding new global tariffs and that discussions on Bilateral Trade Agreement with the US are continuing with a view to conclude it at the earliest.
Answering a query during the weekly media briefing, Ministry of External Affairs Spokesperson Randhir Jaiswal said the US announcement on tariffs is a 301 enforcement action and it was initiated following the US Supreme Court ruling on the tariff issue.
"We have taken note of the announcement. This is a 301 enforcement action and it was initiated following the US Supreme Court ruling on the tariff issue...We have made our position clear on this subject. Our discussions on the Bilateral Trade Agreement (BTA) with the US side are continuing, with a view to concluding the BTA at the earliest," he said.
The Office of the US Trade Representative (USTR) on Thursday announced fresh tariff slabs ranging from 10 to 12.5 per cent across 60 economies under Section 301 of the Trade Act of 1974. The duties, which take effect Friday, hit major global trading partners following action directed by President Trump over what Washington described as inadequate measures to prohibit the import of goods produced with "forced labour".
Under the new structure, India has been placed in the lower 10 per cent tariff category alongside 16 other economies, including the United Kingdom, Canada, Indonesia, Mexico, and Bangladesh. Official sources told ANI that while New Delhi was initially slated for the higher 12.5 per cent bracket, it secured the lower rate following constructive and productive engagement with the US on labour practices.
According to the USTR, the 10 per cent rate applies to economies that either maintain a forced labour import prohibition, have committed to one through a Reciprocal Trade Agreement, or have partial regimes preventing such imports. Meanwhile, a differential 10 to 12.5 per cent framework applies to certain products from the European Union, Taiwan, Japan, Korea, and Switzerland, whilst all other investigated nations face the full 12.5 per cent duty.
The decision follows extensive Section 301(b) investigations initiated by the USTR in March across 60 economies, which involved consultations with over 45 governments, multiple public hearings, and the analysis of more than 1,600 written comments.
The move marks the latest escalation in global trade measures following an earlier ruling by the US Supreme Court that declared several tariffs imposed under emergency powers unlawful, prompting the administration to utilise Section 301 statutory authority to advance its trade agenda.
— ANI
Reader Comments
Interesting how the US claims this is about "forced labour" but many see it as a protectionist move. India needs to tread carefully—these tariffs could hurt our exports in the long run. The BTA must ensure fair terms for both sides.
A 10% tariff is still a tariff! Indian exporters will feel the pinch, especially in sectors like textiles and auto parts. Hope the government is simultaneously diversifying our trade partners—we can't rely solely on the US.
I appreciate the MEA's calm response. Let's not forget that the US Supreme Court ruling led to this—it's a legal issue, not just a trade one. We should use this as leverage to push for better market access for Indian goods in the US. 😊
As someone who works in trade logistics, this is a mixed bag. The lower rate is welcome, but the uncertainty around BTA timelines is concerning. India should push for a comprehensive deal that includes services and digital trade.
Why is the US so fixated on "forced labour"? It feels like a smokescreen for protectionism. India has robust labour laws—maybe we need to showcase our compliance more effectively to avoid such tagging in the future. 🤔
M Manish T