New Delhi: India has urged the United States to scrap its proposed 12.5% tariff on Indian imports, stressing that trade disputes should be resolved through bilateral negotiations, not unilateral action under the USTR’s Section 301 probe.

At a public hearing, Indian officials challenged the USTR’s findings, arguing there is no country-specific evidence linking Indian exports to forced labour. India reiterated its commitment to eliminating forced labour and called for continued dialogue through the ongoing India-US trade negotiations.

APEDA dismissed allegations related to India’s rice trade, while industry bodies FICCI and CII warned that the proposed tariffs could raise costs, disrupt supply chains, and hurt businesses and consumers in both countries.

The US proposal remains under review, with a final decision expected after the USTR considers public feedback.

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