A full India-US trade deal may depend on the US opening fresh Section 301 probes into India’s competitor countries.
The US had already launched Section 301 investigations into several trading partners, including India, alongside a blanket 10% tariff.
India could face an additional 8% tariff under a related excess-capacity probe.
That would take India’s overall tariff rate to around 18%.
Talks between the two countries continue, with officials hopeful of a deal this year.
The two sides had reached an initial understanding on a deal in February 2026.
Negotiations slowed after a set of US tariff measures were struck down by the US Supreme Court.
The US had separately launched Section 301 investigations into unfair trade practices involving several trading partners, including India.
A blanket 10% tariff was imposed alongside those investigations.
India is reportedly likely to face an additional 8% tariff under a related excess-capacity probe, which would take its overall rate to around 18%.
A full trade deal may depend on the US opening fresh Section 301 probes into India’s competitor countries, which would help restore a tariff margin India has lost.
US officials visited India on September 16 for talks.
Commerce and Industry Minister Piyush Goyal led an Indian delegation to the US for trade talks on September 22.
Commerce Secretary Rajesh Agrawal has said India is hopeful of reaching a framework trade deal with the US this year.
Officials have said a framework deal would aim to address tariff issues to the benefit of Indian exporters.
Bilateral trade talks between India and the US have continued across multiple rounds through 2026.
Trade negotiations of this scale typically involve discussions across multiple sectors, including agriculture, technology and manufacturing.
India’s exports to the US span sectors including textiles, pharmaceuticals, IT services and engineering goods.
Tariff uncertainty has previously been cited by Indian exporters as a factor affecting planning and investment decisions.
India-US engagement (representative image), Wikimedia Commons, GODL-India
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