The ongoing Section 301 probes against India launched by the USTR will be part of the India-US trade talks which will be taken forward once the US trade team visits India, sources said.
In April, a team of Indian officials visited Washington to hold negotiations on the proposed India-US bilateral trade agreement (BTA), and now it is the US’ turn, a source tracking the matter said.
“Now, we expect the US team to visit India next for trade talks. No dates have been decided,” the official said.
New Delhi is unlikely to take on definite commitments right now on its proposed BTA with the US as a lot has changed on the US tariff front since it agreed on an interim framework for the deal on February 2, sources said..
That time, India was amendable to eliminating or lowering tariffs on most industrial and agricultural products, while the US agreed to lower reciprocal tariffs to 18 per cent from 25 per cent. Washington also removed the 25 per cent penal tariffs imposed on Indian goods for buying Russian oil.
The US Supreme Court, however, struck down all reciprocal tariffs, including the 25 per cent levied on India, on the ground that the administration exceeded its legal authority by using the International Emergency Economic Powers Act (IEEPA).
Reciprocal tariffs
Subsequently, the Donald Trump regime replaced the reciprocal tariffs with a 10 per cent universal global tariff, which, too, were ruled as invalid by the US International Trade Court in New York.
However, the ongoing Section 301 investigations against India and some other countries, launched by the USTR in March 2026, are a reason for worry for New Delhi, as they could lead to trade penalties.
“It is important that the Section 301 investigations are made part of the BTA talks as it may potentially lead to more tariffs on India. New Delhi, therefore, must take up the issue,” an industry source said.
The two Section 301 investigations are on structural excess manufacturing capacity and forced labor enforcement, both of which have drawn sharp criticism from New Delhi as it argues that the cases have no merit.
Published on May 11, 2026