Commerce and Industry Minister Piyush Goyal has sought to allay concerns over a proposed US tariff action that could impose an additional 12.5% duty on Indian exports, arguing that the measure may ultimately work to India’s advantage. He said India is “not overly concerned” about the move under Section 301 of the US Trade Act and suggested Washington is “trying to create a competitive edge for India.”
Speaking at a Financial Express event in Mumbai, Goyal framed the US initiative as a response to domestic constraints on imposing reciprocal tariffs and said it should not be viewed as a major threat for Indian exporters. “So I don’t think we need to worry about Section 301. We’ll tackle it, it’s our responsibility,” he said.
The comments come after the Office of the US Trade Representative (USTR) proposed additional tariffs on imports from 60 economies, including India, over what it described as inadequate measures to prohibit and enforce restrictions on goods produced using forced labour. Under the proposal, India is among 54 economies that could face an extra 12.5% duty, while countries with partial regimes or commitments in place may see a 10% levy. The USTR launched the investigations in March under Section 301 of the US Trade Act of 1974, saying the identified practices burden or restrict US commerce.
Without naming China, Goyal said the investigation was “directed at a particular country” and indicated that New Delhi would safeguard its interests during ongoing talks with Washington. “We will protect India’s interests and I’m very confident that the deal will come through. It’ll be a good deal,” he added.
Goyal also expressed confidence that an interim bilateral trade agreement between India and the US would be concluded soon. He said US Trade Representative Jamieson Greer is expected to visit India within the next two weeks for further discussions on the proposed interim pact. Negotiators from both sides recently wrapped up another round of talks in New Delhi, which the Commerce Ministry described as “constructive and positive,” covering trade in goods, non-tariff measures, customs and trade facilitation, and economic security alignment.
According to the ministry, both countries reaffirmed their commitment to a mutually beneficial agreement aimed at strengthening bilateral trade and economic ties. Goyal reiterated that India will continue to pursue “fair and equitable trade” and stressed that any agreement signed would be balanced and not concluded under externally imposed deadlines. He had earlier indicated that an interim trade agreement with the US could be reached by July.
The latest USTR probe is being viewed as part of the Donald Trump administration’s efforts to explore alternative tariff tools after a recent US Supreme Court ruling curtailed the President’s authority to impose sweeping tariffs without congressional approval. As part of the process, the USTR has invited written comments on the proposed action by July 6 and will hold public hearings on July 7 before making a final decision on the tariff proposal.
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