Trump’s New Tariffs Hit Indian Imports; Can India Avoid A Trade Shock?

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India says negotiations with the United States remain on track even as the Trump administration proposes new tariffs on imports from 60 economies

June 3, 2026: The Indian government has sought to calm concerns among exporters after the United States proposed fresh tariffs on imports from 60 economies, including India. The move follows investigations by the US Trade Representative (USTR) under Section 301 of the Trade Act of 1974, focusing on measures adopted by various countries to restrict goods allegedly linked to forced labour. While the proposal has raised uncertainty for exporters, Indian officials stressed that the measures are still under review and not yet final.

The Commerce Ministry said India remains actively engaged with Washington on the tariff issue while continuing negotiations on a broader bilateral trade framework. Discussions are currently underway in New Delhi to finalize an interim trade arrangement that could serve as the foundation for a larger Bilateral Trade Agreement (BTA). Officials noted that several product categories, including goods already covered under Section 232 tariffs, have been excluded from the proposed measures, while special provisions are also being considered for textile and apparel exports.

The proposed tariffs are currently in the consultation stage, with stakeholders allowed to submit comments until July 6 and participate in public hearings beginning July 7. Both India and the United States have reiterated their commitment to strengthening economic ties despite occasional disagreements over trade policies. The outcome of the ongoing negotiations is expected to have significant implications for Indian exporters across sectors such as textiles, pharmaceuticals, engineering goods and manufacturing.

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