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U.S. TRADE OFFICE PROPOSES NEW 12.5% TARIFF ON INDIA OVER FORCED-LABOR IMPORT CONCERNS

The United States Trade Representative (USTR) has proposed additional import duties of up to 12.5% on products from India and dozens of other economies following a Section 301 investigation into alleged failures to prevent the importation of goods linked to forced labor

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U.S. TRADE OFFICE PROPOSES NEW 12.5% TARIFF ON INDIA OVER FORCED-LABOR IMPORT CONCERNS

WASHINGTON, D.C., June 3, 2026 — The United States Trade Representative (USTR) has proposed additional import duties of up to 12.5% on products from India and dozens of other economies following a Section 301 investigation into alleged failures to prevent the importation of goods linked to forced labor. The proposal is part of a broader U.S. effort to tighten global supply-chain standards and address what officials describe as unfair trade practices.

According to USTR findings, India is among a group of countries that Washington claims have not adequately implemented or enforced prohibitions on imports produced through forced labor. The proposed tariff measure comes at a sensitive time as Indian and U.S. officials continue negotiations on a broader bilateral trade agreement.

U.S. Trade Representative Jamieson Greer stated that American workers should not be forced to compete with products benefiting from labor practices that violate international standards. The administration argues that stronger enforcement mechanisms are necessary to ensure fair competition in global markets.

India has previously rejected similar allegations and has sought the termination of the U.S. investigations, maintaining that the claims lack sufficient justification. Trade analysts suggest the tariff proposal could become a significant point of contention in ongoing trade talks between the two countries.

The proposed tariffs are not yet final. USTR has opened a public consultation period before any final decision is made, with hearings expected in the coming weeks. Certain categories of goods may be exempt from the proposed duties

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