Will Trump’s New Tariffs Hit India-US Trade Deal? MEA Clarifies

India has reacted to the possible impact of new US tariffs on the upcoming India-US trade deal talks. During a weekly press conference, Ministry of External Affairs spokesperson Randhir Jaiswal, while responding to a media query, said that both parties are committed to completing the deal very soon. On Tuesday (local time), the United States announced a fresh slew of additional tariffs of 10 per cent and an additional duty of 12.5 per cent on key global economies, claiming that investigations have revealed goods being imported from 60 countries are produced via forced labour. The comments came on a day US President Donald Trump expressed confidence that Washington and New Delhi will soon reach a trade agreement, while describing Prime Minister Narendra Modi as a “good friend”.“As far as the trade deal is concerned, a US team was in India from June 1 to June 4, up until yesterday, for negotiations. As you may have seen, the press release issued by the Ministry of Commerce stated that the discussions between the two sides were very positive and constructive. We hope that further discussions will take place in the coming days and that the interim trade deal currently under discussion will be finalised by both sides. Both parties are committed to completing it as soon as possible. For more specific information on this bilateral trade agreement, as I mentioned, the Ministry of Commerce has issued a press release. I would like to draw your attention to the additional details provided in that release,” Randhir Jaiswal told reporters during the briefing. 

The Office of the United States Trade Representative (USTR) listed 54 economies including India— which it claimed have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour. The list includes countries such as Australia, China, India, Israel, Japan, Qatar, and Russia. Other countries listed included Saudi Arabia, Singapore, South Korea, Sri Lanka; Switzerland, Taiwan, Thailand, Turkiye UAE, the United Kingdom.

#WATCH | Delhi | MEA Spokesperson Randhir Jaiswal says, “So far this year, 1,076 Indian citizens have been deported from the US, whereas last year the figure stood at 3,567. Discussions regarding migration and mobility are underway between the two sides; the focus is on how to… pic.twitter.com/fvWBTGGRN3

You Might Be Interested In

• Denial Of Conjugal Rights Is Mental Cruelty: Supreme Court
• 'We The Leaders': What Is K Annamalai's New Movement?
• Khan Sir Booked Under Arms Act

— ANI (@ANI) June 5, 2026

Speaking to the reporters at White House, Trump said on Thursday, “For years, India took advantage of the United States… They charged us tremendous tariffs and paid nothing… Now it is the exact reverse and we are making a lot of money with India. But we will get to a deal because I like your Prime Minister (Narendra Modi) a lot; he is a good friend of mine, and we get along well. We have a good relationship.”

According to the USTR, economies that already have some form of forced labour import prohibition, or have committed to implementing such measures through trade agreements, could face an additional tariff of 10 per cent. Other economies may face a 12.5 per cent additional duty.
The proposed action also includes a textile mechanism that would allow a certain volume of apparel and textile imports from some economies to enter the US at a reduced Section 301 tariff rate.

As per the USTR, the action comes under Section 301 of the Trade Act of 1974, which allows measures to be taken over 60 economies over their acts, policies and practices related to the failure to what it called impose and prohibit goods produced with forced labour–calling it unreasonable and a burden on US commerce.

The USTR flagged 6 economies for having failed to effectively enforce a prohibition on the importation of goods produced with forced labour. These include the European Union, Pakistan and Canada.

(With inputs from ANI)

Also Read: US Plans 12.5% Tariffs on India and 59 Other Countries: What It Means for Trade, Exports and the Economy