The United States has proposed imposing an additional 12.5% tariff on imports from India, alleging that the country does not have adequate measures to prevent goods made with forced labour from entering its market.
The proposal was announced by the Office of the United States Trade Representative (USTR) after an investigation conducted under Section 301 of the US Trade Act. The review assessed whether major US trading partners had effective systems in place to block imports linked to forced labour.
According to the USTR, India is among 54 economies that lack a comprehensive ban or strong enforcement mechanism against products made using forced labour. If the proposal is approved, exports from these economies to the United States could face an additional 12.5% tariff.
Another group of economies, including Canada, the European Union, the United Kingdom and Mexico, could face a lower 10% tariff. The USTR said these countries have some restrictions in place but still have gaps in enforcement.
US Trade Representative Jamieson Greer said countries that fail to address forced labour create unfair competition for American workers and businesses. He said the proposed tariffs are aimed at ensuring a level playing field and strengthening US trade enforcement.
The proposed duties may not apply to all products. Certain categories, including some pharmaceuticals, energy-related goods and strategic materials, could be exempt from the additional tariffs.
The proposal is part of the Trump administration’s broader trade strategy and follows efforts to reintroduce tariff measures after some earlier actions faced legal challenges.
The USTR has opened the proposal for public consultation and invited comments until July 6. A public hearing is scheduled for July 7 before a final decision is made.
