USTR Proposes Additional Section 301 Tariffs on Imports from 60 Economies, Including India

Key Highlights

·         The United States Trade Representative has completed investigations against 60 economies, including India, concerning measures affecting the import of goods.

·         Following the investigations, the USTR has proposed additional tariffs under Section 301 of the U.S. Trade Act of 1974 on imports from these economies.

·         The proposed tariffs are not yet final and remain subject to stakeholder consultations and public hearings.

Proposed U.S. Tariff Measures

·         Additional tariffs have been proposed on imports from the 60 economies covered by the investigation.

·         Certain products are excluded from the proposal, including:

o    Products already covered under Section 232 tariffs.

o    Other specified exempted products.

·         A special mechanism has also been proposed for:

o    Textile products

o    Apparel products

·         The mechanism may allow a specified volume of imports from selected economies to enter the U.S. market at lower tariff rates.

Consultation Process

Important Deadlines

·         22 June 2026 – Last date for stakeholders to request participation in public hearings.

·         6 July 2026 – Deadline for submission of written comments.

·         7 July 2026 – Public hearings to be conducted by USTR.

·         The USTR will review all comments, submissions and hearing testimonies before taking a final decision on the proposed tariffs.

India's Response

·         India remains actively engaged with the United States as part of the ongoing Section 301 proceedings.

·         Discussions are aimed at addressing concerns arising from the proposed tariff measures and protecting bilateral trade interests.

Parallel Negotiations on Trade Framework

·         Alongside the Section 301 discussions, India and the United States are continuing negotiations to finalize a broader trade framework agreement.

·         These discussions are based on:

o    The framework announcement made on 2 February 2026.

o    The India–U.S. Joint Statement issued on 7 February 2026.

·         The proposed framework is expected to strengthen bilateral trade and economic cooperation between the two countries.

Significance

·         The proposed Section 301 tariffs could affect trade flows between the U.S. and several economies, including India.

·         The special provision for textiles and apparel may provide opportunities for eligible exporters if lower-tariff quotas are implemented.

·         India's continued engagement with the U.S. on both the Section 301 process and the broader trade framework reflects efforts to safeguard export interests, maintain market access, and deepen bilateral economic ties.

Key Takeaway

While the U.S. has proposed new tariffs under Section 301, no final decision has been taken yet. India is actively participating in the consultation process and simultaneously pursuing a broader trade framework agreement with the United States to strengthen long-term economic relations.

 

[ABS News Service/04.06.2026]

The United States Trade Representative (USTR) has concluded investigations against 60 economies, including India, regarding measures of these economies to prevent the import of goods. As a result, the USTR has proposed imposing additional tariffs on imports from the 60 economies under Section 301 of the U.S. Trade Act of 1974. Products covered under section 232 tariffs and certain other products are excluded from these tariff proposals. A special mechanism has also been proposed for textile and apparel products that could allow a certain volume of imports from selected economies to enter the U.S. at lower tariff rates.

As per the report, the proposed tariffs are not yet final and stakeholders can submit requests to participate in public hearings by 22 June 2026. Written comments can be submitted until 6 July 2026. Public hearings will be held on 7 July 2026. The USTR will consider the comments and testimony received before taking a final decision on the proposed measures.

India remains engaged with the U.S. on the matter as a part of Section 301 proceedings. India is also parallelly engaged with the US for finalisation of a framework agreement as was announced on 2nd February 2026 and in accordance with the joint statement released on 7th February 2026.