India and the United States resumed trade negotiations in New Delhi

India and the United States resumed trade negotiations in New Delhi

¨     India and the United States resumed trade negotiations in New Delhi.

¨    Actions taken under Section 301 of U.S. trade law emerged as a key issue in the talks.

¨  India is seeking protection from potential future U.S. tariffs linked to ongoing Section 301 investigations under the proposed Bilateral Trade Agreement (BTA).

¨     Section 301 is a provision of the U.S. Trade Act of 1974.

¨  It authorizes the U.S. Trade Representative (USTR) to investigate foreign trade practices and impose trade remedies against practices deemed unfair.

¨  In March 2026, the USTR initiated new Section 301 investigations against 16 trading partners, including India.

¨ The investigations focus on issues such as structural overcapacity in manufacturing sectors and allegations of forced labour in global supply chains.

¨     Piyush Goyal, India’s Commerce and Industry Minister, stated on 1 June 2026 that about 99% of the first phase of BTA negotiations had been completed.

¨     The U.S. delegation was led by Brendan Lynch.

¨     The Indian delegation was headed by Darpan Jain.

¨     The negotiations in New Delhi were scheduled to continue for three to four days.

¨     Following agreement on the framework, Jamieson Greer is expected to visit India in July 2026.

¨   The new U.S. tariff regime under Section 301 is scheduled to take effect on 24 July 2026.

¨  This timeline follows a February 2026 U.S. Supreme Court ruling that declared reciprocal tariffs previously imposed by Donald Trump unlawful.

¨     India is seeking preferential tariff rates and relief from Washington’s 10% flat tariff.

¨   India also wants a tariff structure that preserves its export competitiveness with Bangladesh, Pakistan, and Sri Lanka.