Overview
- India formally challenged the USTR proposal at a public hearing held on July 8, saying the agency has not met the legal standards required under Section 301.
- New Delhi argues the USTR used a flawed methodology by grouping dozens of countries together and relying on broad trade patterns instead of country‑ or sector‑specific evidence.
- APEDA told the panel that India imports very little rice and has regulatory checks that prevent imported rice produced with forced labour from being re‑exported, and it asked for an exemption for Indian rice.
- Indian industry groups FICCI and CII warned the extra 12.5% duty would raise costs for exporters and US supply chains and said the evidence does not justify the measure.
- The USTR proposed two ad‑valorem tiers on June 3 covering 60 economies and is now reviewing written comments and testimony before making a final decision, with diplomatic pushback and possible legal challenges expected.