US Proposes New Tariffs on India and 59 Other Economies
New Delhi: The United States Trade Representative (USTR) has proposed new trade measures against 60 economies, including India, over what it describes as inadequate action to prevent the import of goods produced through forced labour.
The proposal follows investigations launched under Section 301 of the US Trade Act of 1974. According to the USTR, the identified economies have either failed to introduce effective prohibitions on such imports or have not adequately enforced existing restrictions.
The development comes at a crucial moment for India and the United States, which are currently engaged in negotiations aimed at finalising the first phase of a bilateral trade agreement.
Officials from both countries have been holding discussions on market access, tariffs, agriculture and other key trade issues. The latest proposal could add complexity to those talks as both sides seek common ground on broader economic cooperation.
Under the USTR proposal, countries that have adopted or committed to adopting forced-labour import restrictions through reciprocal trade agreements could face an additional 10 per cent tariff.
For economies that do not meet those criteria, the agency has proposed a higher additional duty of 12.5 per cent. India is among the countries placed in the latter category, alongside China, Japan, South Korea, Brazil and several others.
USTR Ambassador Jamieson Greer argued that imports linked to forced labour create unfair competition for American businesses and workers. The agency maintains that stronger enforcement measures are necessary to prevent global supply chains from benefiting from exploitative labour practices.
The investigations began in March 2026 and included testimony from dozens of witnesses as well as hundreds of public comments. The proposed tariffs are currently subject to a consultation process before any final decision is made. Public comments will be accepted before hearings scheduled for July.
