US Proposes Fresh Tariffs On India, 59 Other Economies Over Forced Labour Import Rules
The United States Trade Representative (USTR) has proposed new trade measures against 60 economies, including India, alleging that they have failed to adequately prohibit or enforce restrictions on the import of goods produced using forced labour.
In findings released on Tuesday, the USTR said it had determined under Section 301 of the Trade Act of 1974 that the acts, policies and practices of the economies under investigation were “unreasonable” and burdened or restricted US commerce.
The proposal comes at a significant moment for India and the United States, which are currently negotiating the first phase of a bilateral trade agreement covering issues such as tariffs, market access and agriculture.
Why The US Is Taking Action
Announcing the findings, US Trade Representative Jamieson Greer said Washington could no longer overlook what it sees as inadequate action by trading partners against forced labour-linked imports.
According to Greer, such practices create an uneven global marketplace by allowing goods produced at lower costs to compete with products made under stricter labour standards.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” he said, adding that all major trading partners must do more to prevent global trade from encouraging forced labour practices.
Additional Duties Proposed
As part of the proposed action, the USTR has recommended imposing additional tariffs on imports from the economies covered by the investigation.
Countries that have already adopted, or pledged to adopt, prohibitions on forced-labour imports through reciprocal trade agreements could face an additional 10 per cent duty.
For all remaining economies, including India, the agency has proposed an additional tariff of 12.5 per cent on imports into the United States.
The measures have not yet been finalised and will undergo further review before any implementation.
Investigation Covered 60 Economies
The USTR launched the investigations in March 2026 to examine whether major trading partners had imposed and effectively enforced restrictions on goods produced through forced labour.
According to the agency, the review process included testimony from nearly 60 witnesses as well as around 500 written comments and rebuttal submissions from stakeholders.
India Among Countries Named
India features on the list of economies that, according to the USTR, have failed to impose and enforce adequate prohibitions on the import of goods produced with forced labour.
Other countries named include China, Australia, Japan, Israel, Jordan, Kuwait, Malaysia, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Thailand, Taiwan, the United Arab Emirates, the United Kingdom, Venezuela and Vietnam.
The USTR separately identified economies including Canada, the European Union, Indonesia, Mexico, Ecuador and Pakistan, alleging that while they have prohibitions in place, enforcement remains insufficient.
Potential Implications
Although the proposal does not immediately impose tariffs, it could create fresh uncertainty for exporters and policymakers as Washington evaluates the next steps.
The development is also likely to attract attention in New Delhi, where officials are engaged in ongoing trade discussions with the United States aimed at expanding economic cooperation and resolving longstanding market-access issues.
The final outcome of the review process could influence both global trade flows and the trajectory of ongoing trade negotiations between the US and several major economies, including India.
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