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Informist, Wednesday, Jun. 3, 2026

 

--USTR moots 12.5% tariff on India for export of goods made with forced labour 

--USTR moots 12.5% tariff on all exports to US made with forced labour 

--USTR seeks public comments by Jul 6 on 12.5% forced labour tariff proposal 

 

MUMBAI – The US Trade Representative has proposed an additional tariff of 12.5% on all countries that have failed to impose and effectively enforce a prohibition on the import of goods produced with forced labour, including India. The office of the US Trade Representative, in a release on Tuesday, said that, based on findings from 60 Section 301 investigations, India's failure to impose and effectively enforce a forced-labour import prohibition is unreasonable.

 

China, India, Japan, South Korea, and Switzerland are among the countries which are likely to face 12.5% tariffs on exports of goods made with forced labour.

 

For countries which have imposed a forced labour import prohibition and have committed to imposing and enforcing such a prohibition through an Agreement on Reciprocal Trade, or economies that have imposed a partial regime with the effect of preventing the importation of certain forced labour goods, the US trade body has proposed 10% as the rate of additional duties, the release said. According to the investigation, such countries include Canada, Mexico, and the UK. 

 

"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 release quoted said US Trade Representative Ambassador Jamieson Greer as saying. "We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA (United States-Mexico-Canada Agreement) and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally," the release quoted Greer as saying.

 

The proposal comes amid the ongoing trade deal talks between the US and India, with the first phase of the proposed bilateral trade agreement likely to be announced soon. The US team will be in India Tuesday-Thursday to hold further discussions, Commerce and Industry Minister Piyush Goyal said Monday.

 

In April, India pushed back against the US Section 301 investigations, rejecting allegations of unfair trade practices and seeking the immediate termination of the probes. In its submission to the US Trade Representative, India has said it "firmly denies all allegations made in the initiation notice" related to claims of excess structural capacity and production in manufacturing sectors, according to various media reports.

 

The US Trade Representative is seeking public comments on the proposal for responsive action by Jul. 6, the release said. 

 

Reported by Shreya Shetty

Edited by Saji George Titus

 

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