India, US can finalise interim trade pact only after Section 301 investigations concluded, say officials

India also wants that any trade pact with the US should place it at an advantageous position compared to its competitors such as Bangladesh, Vietnam, Indonesia and Cambodia.

India and the US can conclude the first phase of the bilateral trade agreement (BTA) only after the ongoing Section 301 investigations by the US Trade Representative against India are concluded making the tariff situation clear, an official said on Monday.New Delhi will insist on a commitment from the US that there would be no additional tariffs on Indian goods after the trade deal was finalised, the official added.“If the US wants us to pay any additional tax. ..they have to finish the Section 301 process before that,” the official said.India also wants that any trade pact with the US should place it at an advantageous position compared to its competitors such as Bangladesh, Vietnam, Indonesia and Cambodia.Steep tariffsGoing by the February 6 framework deal announced by the two countries, which the US largely wants to be followed, Washington would impose steep tariffs of 18 per cent (over and above regular MFN tariffs) on Indian goods, while India would eliminate or slash import duties on all industrial goods and a wide range of farm goods.However, with the US Supreme Court subsequently invalidating the 25 per cent US reciprocal tariffs, Indian goods are facing just 10 per cent temporary global tariffs that would lapse on July 24.India now is being investigated for trade violations under two Section 301 (one on forced labour and the other on excess capacities), by the USTR, and is already facing the threat of 12.5 per cent tariffs under one while awaiting the recommendations on the second.“There are more hearings lined up on both the Section 301 investigations following the initial recommendations and the final penal duties will be announced subsequently. It is only after it is clear what duties the US has in mind for India that the interim trade deal can be taken forward,” another source explained.It is expected that the final determinations under Section 301 will happen next month.Commerce Department officials had earlier indicated that a high-level US trade team, headed by USTR Jamieson Greer, would visit New Delhi later this month. Commerce Minister Piyush Goyal said last week that the first tranche of the India-US BTA could be finalised in July.Published on June 8, 2026