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  • India-US Trade Talks Focus On Section 301 And Framework Agreement

India-US Trade Talks remain in focus as the United States Trade Representative (USTR) has concluded investigations against 60 economies, including India, regarding measures adopted to prevent the import of goods. Following the investigations, the USTR has proposed imposing additional tariffs on imports from these economies under Section 301 of the U.S. Trade Act of 1974. […]

India-US Trade Talks Focus On Section 301
Quick Industry Summary
AI
OpportunitySpecial textile mechanism offers potential lower tariffs despite broader tariff risk.

USTR Tariffs: Textile Special Mechanism Creates India Export Window

  • WHAT: USTR proposes Section 301 tariffs on 60 economies, but a special mechanism could allow lower tariffs for certain textile and apparel imports.
  • WHO: Indian garment exporters and textile manufacturers are directly affected, facing potential tariffs but also a specific volume-based lower tariff opportunity.
  • IMPACT: Trade flows for Indian textiles to the US could be bifurcated, with a portion enjoying preferential access while others face higher costs, impacting competitiveness.
  • CONTEXT: This proposal adds complexity to India-US trade relations, alongside ongoing framework agreement discussions, influencing future sourcing and pricing strategies.
  • ACTION: Professionals should actively monitor USTR's final decision and consider submitting comments by July 6, 2026, to shape the textile mechanism's details.
Affects:ManufacturersExportersGarment ManufacturersWeavers & Fabric MillsSourcing ManagersImportersBrand OwnersInvestors
USTR Section 301India-US TradeTextile TariffsApparel ExportsTrade PolicySpecial Mechanism
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India-US Trade Talks remain in focus as the United States Trade Representative (USTR) has concluded investigations against 60 economies, including India, regarding measures adopted to prevent the import of goods. Following the investigations, the USTR has proposed imposing additional tariffs on imports from these economies under Section 301 of the U.S. Trade Act of 1974. However, products covered under Section 232 tariffs and certain other categories have been excluded from the proposed tariff measures. A special mechanism has also been proposed for textile and apparel products that could allow a certain volume of imports from selected economies to enter the U.S. at lower tariff rates.

As per the report, the proposed tariffs are not yet final and stakeholders can submit requests to participate in public hearings by 22 June 2026. Written comments can be submitted until 6 July 2026. Public hearings will be held on 7 July 2026. The USTR will consider the comments and testimony received before taking a final decision on the proposed measures.

India remains engaged with the U.S. on the matter as a part of Section 301 proceedings. India is also parallelly engaged with the US for finalisation of a framework agreement as was announced on 2nd February 2026 and in accordance with the joint statement released on 7th February 2026.

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