Forced labour import curbs: US proposes up to 12.5 pc tariff on 60 countries, including India
Washington, June 3
The United States Trade Representative, under Section 301 of the Trade Act of 1974, has proposed to impose an additional up to 12.5 per cent tariff on India and 59 other economies over allegations of using forced labour to produce imported goods.
In a statement, USTR claimed that 60 economies have failed to enforce rules against imported goods made via forced labour.
"Under Section 301 of the Trade Act of 1974 that the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens or restricts U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act," the statement read.
Ambassador Jamieson Greer said 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," Greer added.
"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 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," he mentioned.
For economies that impose a forced labour import prohibition, that have committed to impose and enforce 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 Representative proposes 10% as the rate of additional duties.
For all other economies, the US Trade Representative proposes 12.5 per cent as the rate of additional duty.
The USTR also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate, said the statement.
The USTR will hold hearings about the proposed actions on July 7, 2026.
— IANS
Reader Comments
Honestly, let's not be defensive. Some Indian factories do have informal labour practices that could be misinterpreted or even legitimately problematic. But a blanket 12.5% tariff on 60 countries seems like a sledgehammer to crack a nut. Why not engage in bilateral talks and do inspection audits with ILO? 🇮🇳
The US wants to impose tariffs but they conveniently ignore how their own multinationals exploit labour in developing nations. This is about power dynamics, not ethics. India should challenge this at the WTO. We can't let the US dictate trade terms unilaterally while they keep their own market closed.
I'm an American living in India. Many Indian factories I've visited do follow good labour practices, but there's no denying that some sectors like brick kilns and garment sweatshops still have issues. The 12.5% tariff will hurt Indian exporters. Time for India to clean up its act and prove the US wrong.
Arre yaar, this is not about forced labour, it's about trade wars! America wants to reduce dependency on China and now they are targeting India too. Our textile sector will be hit hard. Government should speed up trade talks. We can't afford to lose US market at this time.
India should respond by imposing its own tariffs on US goods like American apples and almonds. You can't just throw around allegations like this without proof. The hearings are in 2026? That's too long! Trump-era Section 301 is being misused again. Trade should be fair, not weaponised.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.