US proposes tariffs on India, 59 others over forced labour import curbs

THe United States merchandise Representative (USTR) has proposed merchandise sue against 60 economies, including republic of india, after determining that they feature failed to impose and effectively enforce prohibitions on the import of goods produced with forced labour.In a statement issued on Tuesday, the USTR said it had concluded under Section 301 of the US Trade Act of 1974 that the acts, policies and practices of the 60 economies are "unreasonable and burden or restrict US commerce", making them actionable under American trade law.India is among 54 economies that, according to the USTR, have failed to impose and effectively enforce a prohibition on imports made with forced labour. The list also includes countries such as Australia, Bahrain, Bangladesh, China, Japan, Kuwait, Saudi Arabia, Singapore, the United Kingdom and the United Arab Emirates."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," US trade representative ambassador Jamieson Greer said in the statement.Additional duties proposedAs a result of the determination, the USTR has proposed additional duties on products from the investigated economies and has invited public comments.According to the agency, economies that have already adopted, or committed to adopt, forced labour import prohibitions could face an additional tariff of 10%, while all others could be subject to a 12.5% duty. A separate textile mechanism has also been proposed for certain apparel and textile imports.The investigations were launched on March 12 this year. The USTR said it received testimony from nearly 60 witnesses and around 500 comments during the public consultation process before reaching its findings.According to the USTR, the absence of effective forced labour import bans undermines efforts to eliminate forced labour globally, distorts market conditions by allowing lower-cost production, hurts businesses that do not use forced labour, and enables circumvention of existing restrictions.India-US trade negotiations onThe development comes at a sensitive time in India-US economic relations, with both countries working towards concluding the first tranche of a bilateral trade agreement. Officials from New Delhi and Washington have held multiple rounds of negotiations in recent months, with market access, tariffs, digital trade and agriculture among the key issues under discussion.The proposed USTR action also follows months of trade tensions triggered by US President Donald Trump's reciprocal tariff policy. India was among the countries threatened with higher tariffs earlier this year before Washington temporarily paused some of the measures to allow negotiations with trading partners. New Delhi has maintained that it is seeking a balanced and mutually beneficial trade agreement while protecting sensitive domestic sectors.Despite periodic trade disputes, the United States remains India's largest trading partner. Bilateral goods trade between the two countries crossed $120 billion in recent years, and both governments have repeatedly expressed their commitment to deepening economic ties.The USTR has invited written comments on the proposed measures until July 6 and will hold public hearings on July 7 before taking a final decision. The agency's findings do not automatically result in tariffs, but Section 301 investigations can ultimately lead to duties, quotas or other trade restrictions if the US administration decides to proceed.