India, July 25 -- India said it would continue negotiations with the United States on a bilateral trade agreement after Washington imposed new Section 301 tariffs of 12.5 per cent on Indian goods this week, even as New Delhi registered its objections to the measures and pressed its case that domestic labour standards met the legal threshold the US used to justify the duties.

India's Commerce Department confirmed Friday that the country remains engaged with the US on the proposed bilateral trade agreement, describing its approach as one of "cooperation and pragmatism" despite the imposition of the new tariffs, which took effect Thursday and cover 99.4 per cent of all US imports.

India falls in the 12.5 per cent bracket, the higher of the...