𝗨𝗦 𝗣𝗿𝗼𝗽𝗼𝘀𝗲𝘀 𝗧𝗮𝗿𝗶𝗳𝗳𝘀 𝗢𝗻 𝗜𝗻𝗱𝗶𝗮 𝗔𝗻𝗱 𝟱𝟵 𝗢𝘁𝗵𝗲𝗿𝘀 𝗢𝘃𝗲𝗿 𝗙𝗼𝗿𝗰𝗲𝗱 𝗟𝗮𝗯𝗼𝗿 𝗖𝗼𝗻𝗰𝗲𝗿𝗻𝘀
The United States Trade Representative has proposed additional tariffs on India and 59 other economies. The proposal follows investigations under Section 301 of the US Trade Act of 1974.
The USTR found India failed to impose and effectively enforce a forced labor import prohibition. India appears on a list of 54 economies with this finding.
The proposed additional duties range from 10% to 12.5% on imports. Countries with existing forced labor import bans or commitments to introduce them would face a 10% tariff. Countries without such measures would face a 12.5% tariff.
The announcement comes during a sensitive period. Senior officials from India and the United States are holding a three-day round of trade talks in New Delhi. The two nations have been working toward a bilateral trade agreement.
The USTR launched the investigation in March 2026. It covered economies accounting for 99.4% of US imports. The probe examined whether countries allow goods produced with forced labor to enter global supply chains.
The investigation focused on two areas. The first area covers forced labor used directly in production. The second area covers imported inputs made with forced labor from other countries. These inputs end up in goods exported to the United States.
According to the Global Trade Research Initiative, the focus includes products using imported inputs from China suspected of forced labor production. Indian exports face scrutiny if they use such inputs.
Key sectors at risk include:
- Solar panels. Indian exports to the US often use polysilicon or solar cells from Chinese supply chains linked to Xinjiang.
- Electronics. Manufacturing in India depends on Chinese components and sub-assemblies.
- Textiles and garments. Indian manufacturers use Chinese yarns and fabrics. These face traceability requirements if linked to Xinjiang cotton.
India prohibits forced labor under the Bonded Labour System Abolition Act of 1976. Exporters still face risk because many industries rely on imported intermediate goods from China.
The USTR also proposed a separate mechanism for textiles and apparel. This would allow specified import volumes from selected economies to enter the US at a lower Section 301 tariff rate.
Ambassador Jamieson Greer called the failure of trading partners to address forced labor imports unacceptable. He said American workers are forced to compete on an unlevel playing field.
Section 301 authorizes the USTR to investigate foreign trade policies and practices. It allows the US administration to take corrective action if investigations find harmful practices. These actions include higher tariffs and trade restrictions.