India Should Oppose Additional Tariff Proposal By US Under Section 301: GTRI

(MENAFN- KNN India) New Delhi, Jun 3 (KNN) The Global Trade Research Initiative (GTRI) has challenged the legal basis of the United States Trade Representative's (USTR) proposed 12.5 per cent additional tariff on imports from India and 47 other economies, arguing that the measure exceeds the scope of Section 301 of the US Trade Act of 1974 and violates US commitments at the World Trade Organisation (WTO).

GTRI: Action Misapplies Section 301

The think tank said, "The current investigation exceeds the scope of Section 301, which deals with market-access barriers faced by the US firms in the country being investigated and not what it imports and from where," PTI reported.

It stressed that the investigation is not based on claims that Indian exports are produced using forced labour, but instead centres on whether countries restrict imports originating from third nations where forced labour may be involved.

GTRI Founder Ajay Srivastava said India must firmly argue that the US is attempting to impose its preferred import-control framework on sovereign nations through unilateral trade measures, which falls outside the legitimate scope of Section 301.

He further argued, "India may also argue that concerns regarding forced labour, particularly in countries such as China, are often product-specific and that the US itself remains a major importer of many of the products at issue. Hence, broad country-wide tariff actions are an inappropriate response when the problem could be limited to a few products."

A Negotiating Lever?

GTRI views the proposed tariffs as part of a wider US pressure strategy on India at a time when both countries are engaged in negotiations over a bilateral trade agreement - the framework for which was announced on February 2, 2026, and reaffirmed through a joint statement on February 7, 2026.

The think tank also cautioned that India should prepare for additional Section 301 tariffs in areas such as excess industrial capacity, as the second investigation on that front remains ongoing.

(KNN Bureau)

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