India has formally acknowledged the latest announcement by United States President Donald Trump regarding new global tariffs, while emphasising that discussions on the Bilateral Trade Agreement with Washington are continuing with the objective of concluding it at the earliest.

Ministry of External Affairs Spokesperson Randhir Jaiswal, responding to a query during the weekly media briefing, clarified that the US announcement is a Section 301 enforcement action, initiated following a ruling by the US Supreme Court on the tariff issue. He reiterated that India has made its position clear and remains engaged in negotiations with the US side.

The Office of the US Trade Representative announced fresh tariff slabs ranging from 10 to 12.5 per cent across 60 economies under Section 301 of the Trade Act of 1974.

These duties, which took effect on Friday, target major global trading partners after President Trump directed action against what Washington described as inadequate measures to prohibit the import of goods produced with forced labour.

India has been placed in the lower 10 per cent tariff category alongside 16 other economies, including the United Kingdom, Canada, Indonesia, Mexico, and Bangladesh. Official sources confirmed that New Delhi was initially slated for the higher 12.5 per cent bracket but secured the lower rate following constructive and productive engagement with the US on labour practices.

According to the USTR, the 10 per cent rate applies to economies that either maintain a forced labour import prohibition, have committed to one through a Reciprocal Trade Agreement, or operate partial regimes preventing such imports.

A differential framework of 10 to 12.5 per cent applies to certain products from the European Union, Taiwan, Japan, Korea, and Switzerland, while all other investigated nations face the full 12.5 per cent duty.

The decision follows extensive Section 301(b) investigations initiated in March across 60 economies, involving consultations with over 45 governments, multiple public hearings, and the analysis of more than 1,600 written comments.

This move represents the latest escalation in global trade measures after the US Supreme Court declared several tariffs imposed under emergency powers unlawful, prompting the administration to utilise Section 301 statutory authority to advance its trade agenda.

The enforcement action underscores Washington’s determination to address forced labour concerns while simultaneously reshaping global trade dynamics. For India, the lower tariff rate reflects the outcome of sustained diplomatic engagement and positions New Delhi to continue negotiations on the Bilateral Trade Agreement with the US, which remains a priority for both sides.

ANI