Washington, June 3: The United States Trade Representative (USTR) has proposed an additional 12.5% tariff on India and 59 other countries under Section 301 of the Trade Act of 1974. This action is based on allegations that these nations have not taken adequate measures to prevent the import of products made with forced labor.
The USTR stated that these countries have failed to effectively ban the import of goods produced by forced labor. The statement emphasized that the policies and practices of these nations impose an unfair burden on American trade, justifying the need for action.
U.S. Trade Representative Ambassador Jamieson Greer remarked that it is unacceptable for major trading partners to fail in stopping the import of goods made with forced labor. He noted that this situation creates an uneven competitive landscape for American workers in the global market.
Greer stated, “We will no longer tolerate this inequality. Some trading partners have taken initial steps to curb the import of products made with forced labor, including commitments under the USMCA and reciprocal trade agreements. However, all our trading partners must do more to ensure that global trade does not promote forced labor in any form.”
According to the USTR’s proposal, countries that have banned the import of goods made with forced labor, or have pledged to do so, may face an additional 10% tariff. In contrast, all other countries and economies, including India, would face a 12.5% additional tariff.
The statement also mentioned that the USTR has proposed a special textile mechanism, allowing a specified quantity of textile and apparel products from certain countries to enter the U.S. at a lower Section 301 tariff rate.
The USTR plans to hold a public hearing on the proposed measures on July 7, 2026, after which decisions will be made based on the feedback received.
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