Gita Gopinath, former IMF Deputy Managing Director, said U.S. Section 301 tariffs are creating significant uncertainty for Indian exports.
The instability threatens India's trade trajectory at a time when both nations are resuming trade talks to resolve long-standing disputes. Because the conditions for removal from the 301 list remain vague, Indian exporters face unpredictable costs and market access barriers.
Speaking in a video interview published by India Today, Gopinath said that the final tariff structure and the specific requirements for a country to be removed from the 301 list are still unclear [1]. This lack of transparency complicates long-term planning for businesses relying on the U.S. market.
The current trade friction stems from a Section 301 probe launched in March 2026 [3]. Since that investigation, the U.S. has implemented varying tariff measures. Reports indicate Washington imposed a blanket tariff of 10% [1], while other reports cite an additional tariff move of 12.5% [2].
Gopinath said these measures create a volatile environment for trade. The disparity in reported tariff rates highlights the confusion surrounding the current regime, a factor that may hinder India's ability to secure a stable trade deal.
India has raised concerns regarding these tariffs as trade talks resume this month [1]. The government is seeking clarity on how to mitigate these costs and what concessions may be required to exit the 301 list. Without a clear roadmap, Gopinath said the risks to export growth remain elevated [1].
“US Section 301 tariffs create uncertainty for India’s exports”
The uncertainty surrounding Section 301 tariffs places India in a precarious position during trade negotiations. If the U.S. maintains a vague or shifting tariff structure, India may struggle to attract the investment needed for export-led growth, potentially forcing the government to make deeper concessions to secure a definitive exemption.
