New Delhi: India is among 60 economies that could face fresh US trade measures after the United States Trade Representative (USTR) concluded that several trading partners have failed to adequately prohibit and enforce restrictions on imports produced through forced labour.
In a statement issued Tuesday, the USTR said its investigation under Section 301 of the US Trade Act of 1974 found that the acts, policies, and practices of the identified economies are “unreasonable” and place a burden on or restrict US commerce, thereby subjecting them to potential trade action under US law.
The findings place India alongside a broad group of economies, including China, Japan, Australia, Bangladesh, Bahrain, Kuwait, Saudi Arabia, Singapore, the United Kingdom and the United Arab Emirates.
US Trade Representative Ambassador Jamieson Greer said the inability of major trading partners to curb imports linked to forced labour effectively creates unfair competition for American workers and businesses.
“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 said.
Additional Tariffs Proposed
Following the determination, the USTR has proposed imposing additional duties on products imported from the affected economies and has opened a public consultation process before making a final decision.
Under the proposal, countries that have already implemented — or committed to implementing — bans on forced labour imports could face an additional tariff of 10%. Economies that have not taken such steps may be subjected to a higher duty of 12.5%.
The agency has also proposed a separate enforcement mechanism targeting certain textile and apparel imports, a move that could have implications for global supply chains.
Investigation Spanned Several Months
The Section 301 investigations were launched on March 12 and involved extensive stakeholder consultations. According to the USTR, nearly 60 witnesses provided testimony, while approximately 500 written submissions were received during the review process.
The agency argued that weak enforcement against forced labour imports undermines global efforts to eliminate labour exploitation, distorts competition by lowering production costs for non-compliant manufacturers, disadvantages businesses that adhere to labour standards and creates opportunities to bypass existing trade restrictions.
Trade Talks Continue Amid Fresh Scrutiny
The development comes at a crucial stage in India-US trade relations, as both countries continue negotiations on the first phase of a proposed bilateral trade agreement.
Officials from New Delhi and Washington have held multiple rounds of discussions in recent months, focusing on issues such as tariffs, market access, agriculture and digital trade.
The latest USTR move also follows months of trade uncertainty triggered by US President Donald Trump’s reciprocal tariff policies. India was among several countries that faced the prospect of higher US tariffs earlier this year before Washington temporarily paused some measures to allow further negotiations.
India has consistently maintained that any trade agreement with the United States must be balanced, mutually beneficial and mindful of sensitive domestic sectors.
Strong Economic Ties Remain
Despite recurring trade disagreements, the United States remains India’s largest trading partner. Bilateral goods trade between the two countries has exceeded $120 billion in recent years, reflecting deep economic integration across sectors ranging from technology and manufacturing to energy and services.
The USTR has invited public comments on the proposed measures until July 6 and will conduct public hearings on July 7 before determining the next course of action.
While the findings do not automatically trigger tariffs, Section 301 investigations can ultimately result in duties, quotas or other trade restrictions if the US administration decides to proceed with enforcement measures.
