Section 301 Tariffs Could Hit Indian Exports Just As Trade Deal Nears Completion

India’s trade corridors are facing a sudden shock with the US Trade Representative proposing sweeping new tariffs under Section 301, targeting India and 59 other nations. The announcement comes just days after US Senator Marco Rubio’s high-profile visit, during ongoing three-day trade talks at Vanijya Bhavan. Section 301 allows Washington to impose tariffs without Congress approval, and the USTR has flagged India for failing to enforce a forced labour import prohibition, calling it ‘unreasonable’ for US commerce. The new tariffs could stack on existing 10% US duties, potentially impacting Indian exporters and American importers alike. While the tariffs take effect after July consultations, India remains engaged in negotiations. Recent signals suggested the trade deal was nearly complete, with both US Ambassador Sergio Gor and Commerce Minister Piyush Goyal highlighting 99% progress. Rubio’s warning on ending the Russian oil waiver adds further uncertainty, layering energy risks on top of trade concerns.