
Jun 9, 2026
Trade experts are urging New Delhi to resist pressure from Washington’s latest Section 301 tariff threats, warning that rushing into an interim bilateral trade agreement under duress could result in a highly lopsided deal for India. The warning follows the Trump administration’s proposal of a fresh 12.5% tariff on imports from 60 economies—including India—linked to alleged failures in restricting forced labour. Trade analysts emphasise that Section 301 actions are historically used as aggressive leverage to extract deep trade concessions. They argue that India must protect its long-term economic interests rather than making hasty compromises on market access, import duties, or digital commerce rules simply to avoid short-term tariff friction, according to a report.
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