The Trump administration has proposed fresh tariffs on India and 59 other economies, citing concerns over the enforcement of rules against goods linked to forced labour. India could face an additional 12.5% duty under the proposal, though the measures are not yet final. New Delhi has responded by saying it remains engaged with Washington through the Section 301 process while continuing negotiations on a broader trade agreement. The move comes at a sensitive moment, with India-U.S. trade talks nearing completion. Public hearings are scheduled for July, after which the U.S. will decide whether to implement the proposed tariffs.

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