India Continues Talks On U.S. Tariff Proposal
India is continuing discussions with the United States following the conclusion of a U.S. Trade Representative (USTR) investigation into import-related measures adopted by 60 economies, including India, under Section 301 of the U.S. Trade Act of 1974.
The USTR has proposed additional tariffs on imports from the affected economies as part of the investigation. However, the proposed measures are not yet final and remain subject to a public consultation process.
Of particular interest to the textile and apparel sector, the USTR has proposed a special mechanism that could allow a specified volume of textile and apparel imports from selected economies to enter the U.S. market at lower tariff rates. Further details regarding the scope, eligibility criteria and country coverage are expected to emerge during the consultation process.
According to the USTR’s proposed timeline, stakeholders may request participation in public hearings until June 22, while written comments can be submitted through July 6. Public hearings are scheduled for July 7, after which the USTR will review stakeholder feedback before taking a final decision on the tariff proposals.
The Ministry of Commerce and Industry said India remains actively engaged with the United States on the Section 301 proceedings. Simultaneously, both countries are continuing negotiations to finalise a broader trade framework agreement announced earlier this year.
The proposed framework follows bilateral understandings reached during high-level discussions between India and the United States in February 2026 and is aimed at strengthening trade and economic cooperation between the two countries.
For India’s textile and apparel industry, which counts the United States as its largest export destination, developments relating to the proposed tariff measures and the preferential textile import mechanism will be closely monitored. Industry stakeholders are expected to assess the potential implications for market access, competitiveness and future export opportunities once further details become available.
