US Targets India with Forced Labour Tariff Amid Talks on Trade Pact
The U.S. said India failed to enforce a forced-labour import ban, a finding that could raise costs and complicate trade talks.
- On Tuesday, the United States proposed an additional 12.5% tariff on Indian imports, alleging India failed to enforce forced-labour import prohibitions during trade talks in New Delhi led by Assistant United States Trade Representative Brendan Lynch.
- Targeting 60 economies, the Office of the United States Trade Representative launched this Section 301 investigation on March 12, accusing India of failing to block imports linked to forced labour, specifically cotton supply chains tied to China.
- U.S. Trade Representative Jamieson Greer argued the failure to address forced labour creates an "unlevel playing field" for American workers, while India's Commerce Ministry confirmed it remains engaged in separate bilateral trade agreement negotiations.
- Ajay Srivastava, founder of the Global Trade Research Initiative, advised that India should treat Section 301 actions and bilateral trade talks separately, suggesting the finding could be challenged as it focuses on import restrictions rather than export practices.
- The proposed tariffs are not final, as the USTR will consider public opinion before deciding; interested parties can submit requests to appear at hearings by June 22, 2026, with written comments due July 6 and hearings scheduled for July 7.
36 Articles
36 Articles
US proposes new forced-labour tariffs; India says it will fight the levies
The US's trade office has concluded that 60 economies, including India, failed to effectively curb imports produced with forced labour. Indian exporters now face a 12.5% duty hike unless New Delhi can secure exemptions before the July deadline.
US proposes 12.5% additional tariff on India, 53 other nations over forced labour import concerns
The US proposes a 12.5% tariff on Indian imports, alleging failure to prohibit goods made with forced labour, a move India rejects, advocating.forced labour imports, US trade tariffs, USTR proposals, India trade, global trade practices, import restrictions, labour rights, tariff on Indian goods, trade negotiations, unfair competition, textile tariffs, US trade representative, bilateral trade, economic sanctions, supply chain integrity
Why Is US Threatening India With Forced Labour Tariffs While Negotiating A Trade Deal?
The good news is that the proposal is not final yet. Interested parties can submit requests to appear at hearings by 22 June 2026, with written comments due by July 6, and USTR hearings scheduled for July 7
USTR proposes 12.5% tariffs on India over 'forced labour': Is Trump inventing new ways to reimpose tariffs struck down by the Supreme Court?
The US Trade Representative (USTR) has proposed to impose fresh tariffs on around 60 trading partners for reasons as vague as ‘forced labour’. The USTR released a 98-page report on 3rd June, in which it proposed tariffs ranging from 10 to 12.5% on India, China, Japan, Pakistan, South Korea, Brazil and Switzerland, among others. The USTR has proposed 10% tariffs on Canada, Mexico, Taiwan and the United Kingdom over alleged failure to enforce a fo…
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