India pushes US for tariff shield, end to forced-labour probe in mid-July interim deal

New Delhi is seeking preferential rates and protection from future US tariff hikes as USTR Section 301 probes threaten 10-12.5% additional duties on Indian textiles citing forced labour and excess capacity. Apparel exporters face material downside if deal slips past mid-July target.

— Source publishedMon, 8 Jun, 2026, 20:19 IST·First seen Mon, 8 Jun, 2026, 20:39 IST·Source Times of India · Business

What happened

India-US Trade Deal · India seeks preferential tariffs and protection from future US hikes in interim trade deal, pending USTR Section 301 probes citing forced

Key facts

  • 10-12.5% proposed tariff
  • 12.5% forced-labour tariff
  • mid-July target

Why this matters

Accelerate diversification M&A or supply agreements outside India before mid-July to hedge tariff exposure, and reassess any pending India-sourced apparel asset valuations against a 10-12.5% duty scenario.