India-US
USTR proposes 12.5 percent duties on India, others over forced labour violations
The Office of the United States Trade Representative (USTR) has proposed imposing additional duties of up to 12.5% on imports from multiple countries, including India, over allegations of failure to effectively prohibit and enforce restrictions on goods produced using forced labour.
In a statement, the USTR said, “The U.S. Trade Representative proposes additional duties on all products of the investigated economies, except as provided in Annex A to the Federal Register notice.”
It further stated that economies which have implemented or committed to enforce forced labour import prohibitions, or those with partial enforcement regimes under reciprocal trade agreements, would face a lower additional tariff of 10%. For all other economies, including those under full investigation, the proposed rate is 12.5%.
The proposal also includes a textile mechanism allowing a specified volume of apparel and textile imports from certain economies to enter the US at a reduced Section 301 tariff rate.
Section 301 of the US Trade Act of 1974 allows the US government to respond to what it considers unjustifiable, unreasonable or discriminatory foreign trade practices that burden US commerce. Under this provision, the USTR can initiate investigations and impose trade measures following determinations of harm.
According to the USTR, on March 12, 2026, it launched 60 investigations into economies alleged to have failed to enforce prohibitions on imports of goods produced with forced labour. The agency has now concluded that the failure of these economies to enforce such measures is “unreasonable or discriminatory” and actionable under Section 301(b)(1) of the Act.
Meanwhile, India said it remains engaged with the United States on the issue as part of ongoing Section 301 consultations.
An Indian government statement said discussions are also underway in parallel for finalisation of a framework trade agreement, as announced on February 2, 2026, and in line with the joint statement issued on February 7, 2026.
As per USTR the following 54 economies have failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour:
Algeria; Angola; Argentina; Australia; the Bahamas; Bahrain; Bangladesh; Brazil; Cambodia; Chile; China, People’s Republic of; Colombia; Costa Rica; Dominican Republic; Egypt; El Salvador; Guatemala; Guyana; Honduras; Hong Kong, China; India; Iraq; Israel; Japan; Jordan; Kazakhstan; Kuwait; Libya; Malaysia; Morocco; New Zealand; Nicaragua; Nigeria; Norway; Oman; Peru; the Philippines; Qatar; Russia; Saudi Arabia; Singapore; South Africa; South Korea; Sri Lanka; Switzerland; Taiwan; Thailand; Trinidad and Tobago; Türkiye; United Arab Emirates; United Kingdom; Uruguay; Venezuela; and Vietnam.
The following six economies have failed to effectively enforce a prohibition on the importation of goods produced with forced labor: Canada; Ecuador, the European Union; Indonesia; Mexico; and Pakistan.
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