NEW DELHI – India is set to present its case before the US International Trade Commission (USITC) in Washington D.C. on July 8, pushing back against proposed tariffs linked to US Section 301 investigations into alleged forced labor practices. A delegation comprising senior commerce ministry officials, including Joint Secretary Brij Mohan, and representatives from prominent industry chambers such as FICCI, CII, and APEDA, will participate in the public hearings.
US Investigations Target Global Supply Chains
The US Trade Representative (USTR) initiated two Section 301 investigations in March 2026, targeting nearly 60 countries, including India, over concerns regarding forced labor in production and imports, as well as excess industrial capacity. Following its findings, the USTR released a report in June proposing additional tariffs, including a 12.5% duty on imports from 54 economies, a move India strongly contests.
These investigations and potential tariffs are seen as a significant hurdle in finalizing a bilateral trade deal between India and the US, despite both nations indicating a near completion of the first tranche of the agreement. Recent visits, such as USTR Jamieson Greer's meetings with Commerce and Industry Minister Piyush Goyal in June, underscore the ongoing diplomatic efforts.
India's Stance: Reconsideration and Dialogue
In its formal response to the investigation, India's Department of Commerce has urged the US to reconsider the proposed tariffs, citing a lack of sufficient basis for the claims. India emphasized its willingness to engage constructively with the USTR through consultation and dialogue on any specific concerns. The country maintains that issues of forced labor in global supply chains are best addressed through robust domestic criminal and labor-law enforcement, coupled with adequate due diligence frameworks that include risk mitigation and remedial mechanisms.
“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 Voice Concerns
Several Indian industry associations have also submitted their detailed responses to the USITC, highlighting the potential negative impact of the proposed tariffs. The Federation of Indian Chambers of Commerce & Industry (FICCI) argued that India's legal and regulatory safeguards, along with extensive compliance mechanisms adopted by its industries, negate the need for additional tariffs. FICCI underscored that the absence of a forced labor importation ban in India does not imply encouragement or facilitation of forced labor goods.
The Confederation of Indian Industry (CII) asserted that the proposed 12.5% additional duty is unwarranted, based on factually inaccurate assessments, and would unfairly penalize compliant industries without achieving its stated policy goal. Similarly, the Automotive Component Manufacturers Association of India (ACMA) has sought an exemption for auto-components, emphasizing their critical role in US supply chains.
The Seafood Exporters Association of India (SEAI) also requested relief, noting that India is the largest single supplier of frozen shrimp to the US. An additional 12.5% duty on Indian frozen shrimp, SEAI warned, would reduce supply and increase costs for US importers and consumers, ultimately harming legitimate trade and resilient US-India supply chains.