India to raise US Section 301 tariff probe as trade deal enters final stretch: Report – Firstpost

India is expected to take up Washington’s Section 301 investigation and potential tariff measures with US trade officials this week, as both sides push to finalise a long-anticipated bilateral trade agreement, Reuters reported, citing a source.

The three-day talks are scheduled to begin on Tuesday in New Delhi, with a US delegation led by Assistant US Trade Representative for South and Central Asia Brendan Lynch.

The discussions come at a decisive stage in India–US trade engagement, with Commerce and Industry Minister Piyush Goyal indicating earlier this week that 99 per cent of
negotiations have already been completed, leaving only a handful of issues unresolved.

According to the report, New Delhi is expected to specifically raise concerns over the impact of Washington’s Section 301 probe, which has triggered apprehensions about possible tariff escalation on Indian exports.

After an initial understanding on a trade framework was reached in February, negotiations slowed following broader tariff actions taken by the Trump administration. While those measures were later struck down by the US Supreme Court, they were followed by renewed trade investigations under Section 301 of the Trade Act of 1974 into alleged unfair trade practices involving several trading partners, including India.

In parallel, the United States imposed a blanket 10 per cent tariff, adding another layer of complexity to ongoing negotiations.

During the upcoming talks with Lynch and his delegation, India is expected to press for relief from tariff pressures arising from the probe, alongside broader demands for improved market access.

“India has to discuss the tariff rate, the Section 301 probe impact, and aim for a competitive tariff rate versus direct competition,” Reuters reported, adding that a deal could be reached if “we (India) get terms that are fair, equitable and balanced.”

New Delhi is also likely to seek tariff treatment that enhances its competitiveness relative to other Asian manufacturing hubs, as it attempts to deepen its integration into global supply chains. According to the report, India is pushing for preferential tariff positioning compared with several developing economies in South and Southeast Asia, including Bangladesh, Pakistan and Sri Lanka.

The broader objective, the report suggest, is to secure a stronger foothold in export markets while reinforcing India’s role as an alternative manufacturing base in a shifting global trade environment.

On the US side, Assistant US Trade Representative Brendan Lynch’s visit signals continued momentum in negotiations, which both governments have framed as part of a broader strategic economic partnership.

US Trade Representative Jamieson Greer is also expected to visit India once the broad contours of the agreement are finalised, underscoring expectations that talks may be moving into their concluding phase.

A senior US official, Sergio Gor, had recently said that a trade deal with New Delhi could be finalised “over the next few weeks and months,” further reinforcing expectations of a near-term breakthrough.

The talks come as India and the United States seek to expand cooperation across trade, investment and supply chain resilience. Both sides had reached a preliminary understanding in February and are now working to convert that framework into a formal agreement.

The proposed pact is expected to cover tariff concessions, customs facilitation, reduction of non-tariff barriers, digital trade, investment promotion and supply chain integration. Officials view this first tranche as a stepping stone towards a more comprehensive bilateral trade agreement in the future.

The urgency in negotiations is also shaped by tariff timelines. According to reports cited by Reuters, Washington has indicated that no additional tariffs under Section 301 would be imposed if a deal is concluded before July 24, when the current 10 per cent baseline tariff arrangement is set to expire.