The United States has proposed imposing additional tariffs on imports from 60 economies, including India, citing concerns over the alleged failure of these countries to effectively prevent the import of goods produced through forced labour.
The proposal, announced by the Office of the United States Trade Representative (USTR), could result in an additional duty of up to 12.5 per cent on products imported from affected economies if approved. The move has been initiated under Section 301 of the US Trade Act of 1974, which allows Washington to take trade action against policies it considers harmful to American commerce.
India Among Countries Facing Proposed Additional Duties
According to the USTR, India is among 60 economies that allegedly have not adequately enforced restrictions on goods produced using forced labour. The list also includes major economies such as China, Japan, Australia, Israel, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Sri Lanka, Thailand, Turkiye, the United Arab Emirates and the United Kingdom.
The USTR stated that countries that have already implemented some form of forced labour import prohibition, or have committed to such measures through trade agreements, could face an additional tariff of 10 per cent. Economies that do not have such mechanisms in place may be subject to a higher tariff of 12.5 per cent.
US Says Measure Aims to Protect Domestic Workers
US Trade Representative Ambassador Jamieson Greer said the proposed action is intended to address what Washington views as an uneven competitive environment for American workers.
“The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable,” Greer said in a statement. He argued that the practice places US workers and businesses at a disadvantage in global markets.
Greer added that while some trading partners have taken steps to curb imports linked to forced labour, more comprehensive action is needed to ensure international trade does not encourage exploitative labour practices.
Textile Sector Could Receive Limited Relief
As part of the proposal, the USTR has also suggested a special textile mechanism that would allow a specified volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate. The measure is aimed at limiting disruption to supply chains while maintaining pressure on trading partners to strengthen labour enforcement measures.
The proposal is currently at the consultation stage, and the USTR has invited public comments from stakeholders.
Hearings Scheduled for July
The USTR will conduct public hearings on the proposed tariffs on July 7, 2026, before taking a final decision. The outcome of the process could have implications for trade relations between the United States and several major exporting nations, including India.
If implemented, the additional duties could affect a wide range of imported products and add fresh pressure to global trade flows at a time when businesses are already navigating economic uncertainty and shifting supply chain strategies.
(With inputs from IANS and ANI)
US proposes new tariffs on India, 59 other economies over forced labour concerns
