India-US trade deal negotiations could be finalised after Washington completes a tariff investigation under Section 301 of the US Trade Act, an Indian official said, as New Delhi seeks clearer terms before agreeing to the interim pact.
The official said India wants the United States to conclude the probe before the deal is finalised, adding that New Delhi is also seeking competitive tariff treatment compared with regional rivals. The proposed agreement has been delayed by uncertainty over US tariffs and the outcome of the ongoing investigation.
The development comes after recent talks in New Delhi between Indian officials and a US delegation led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia.
India-US trade deal linked to USTR Section 301 probe
The USTR Section 301 probe has become a major factor in the India-US trade deal talks. The United States has proposed an additional 12.5 per cent tariff on Indian imports, citing concerns that India is among economies that have not effectively curbed imports of goods made with forced labour.
India has pushed back against the proposed duties and is seeking assurances that no fresh tariffs will be imposed after the agreement is reached. New Delhi also wants tariff rates that keep Indian exports competitive against countries such as Bangladesh, Pakistan and Sri Lanka.
The US Trade Representative says Section 301 investigations examine whether a foreign country’s acts, policies or practices are unreasonable or discriminatory and whether they burden or restrict US commerce.
India-US trade deal may move by mid-July
Indian Commerce Minister Piyush Goyal has said the first phase of the India-US trade deal could be concluded by mid-July. The two countries had earlier reached an initial understanding in February, but progress slowed after the US Supreme Court struck down broad tariff measures introduced by President Donald Trump.
The talks regained momentum after the latest round of discussions in New Delhi. According to reports, both sides are trying to resolve remaining differences over tariffs, market access and safeguards for future trade flows.
For India, the key objective is to secure stable and preferential access to the US market. For Washington, the deal is part of a wider effort to reshape trade relationships, address supply-chain concerns and press partners on labour and manufacturing practices.
Tariff certainty central to negotiations
Tariff certainty has become one of India’s main demands. Indian exporters are concerned that signing a deal without clarity on future US duties could weaken the benefits of the agreement.
An additional tariff would particularly matter for labour-intensive export sectors such as textiles, garments, leather and other manufactured goods. These sectors compete directly with neighbouring countries and rely heavily on price competitiveness in the US market.
A successful interim pact could strengthen bilateral trade and deepen economic cooperation between the two countries. However, the unresolved Section 301 issue means the final shape of the deal remains uncertain.
For now, the India-US trade deal appears to depend not only on market access negotiations but also on whether Washington gives India enough tariff relief and policy certainty once the probe concludes.
Published in SouthAsianDesk, June 9, 2026
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