US Proposes New Tariffs On India And 59 Other Economies Over Failure To Ban Forced Labour Imports

The United States Trade Representative has proposed new trade measures against 60 economies, including India, over concerns about imports produced with forced labour. The USTR said these governments either lack bans on such imports or do not enforce them properly, and that their policies unfairly affect United States businesses and workers.

Under Section 301 of the US Trade Act of 1974, the USTR concluded that the acts, policies and practices of the 60 named economies are “unreasonable and burden or restrict US commerce”. This legal finding makes them eligible for trade action, including higher import duties, if the United States administration chooses to move ahead.

USTR trade action and forced labour import rules

India appears among 54 economies that, according to the USTR, have failed to impose and effectively enforce a ban on goods made with forced labour. The list also includes Australia, Bahrain, Bangladesh, China, Japan, Kuwait, Saudi Arabia, Singapore, the United Kingdom and the United Arab Emirates, among others highlighted in the investigation.

The USTR has proposed additional customs duties on products from the 60 economies covered by the trade action. Economies that already have, or have pledged to introduce, import prohibitions on forced labour goods could face an extra 10% tariff. Those without such commitments could see a 12.5% duty applied to their exports.

USTR trade action details and public consultation

A separate textile mechanism is planned for some apparel and textile imports, reflecting concern over labour conditions in those sectors. The USTR said investigations began on 12 March this year, and officials collected evidence from nearly 60 witnesses. Around 500 written comments were also submitted before the agency reached its final determinations.

Explaining the move, US trade representative ambassador Jamieson Greer said, “The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field.” The statement linked labour abuses abroad with competitive pressures at home.

USTR trade action, India ties and wider impact

The USTR argued that weak or absent forced labour import bans hinder global efforts to remove forced labour from supply chains. According to the agency, this situation distorts markets by allowing cheaper production, harms firms that avoid forced labour, and can help exporters bypass existing restrictions through third countries or complex trade routes.

The timing is sensitive for India-US economic relations. New Delhi and Washington are working on the first stage of a bilateral trade agreement. Officials have held several negotiation rounds in recent months, discussing market access, tariffs, digital trade rules and agriculture, while attempting to balance domestic priorities with broader economic cooperation.

The proposed USTR trade action follows months of friction linked to US President Donald Trump’s reciprocal tariff policy. India was among economies warned of higher duties earlier this year, before Washington paused some steps to allow talks with partners. Indian officials have said they seek a balanced, mutually beneficial deal while protecting sensitive sectors at home.

Despite these disputes, the United States remains India’s largest trading partner, with bilateral goods trade recently crossing $120 billion. Both governments have repeatedly stated that they aim to deepen economic ties. Written comments on the proposed USTR measures are open until 6 July, with public hearings on 7 July, and any final decision could include duties, quotas or other trade limits under Section 301.