The United States Trade Representative (USTR) has suggested imposing tariffs of up to 12.5% on India and 59 other economies under Section 301 of the Trade Act of 1974. USTR alleges that these economies have not adequately enforced rules against goods produced with forced labor.
According to USTR, the failure of these economies to address the importation of forced labor goods is deemed unreasonable and detrimental to US commerce. Ambassador Jamieson Greer expressed concern over the unfair competition American workers face globally due to this situation.
The USTR proposes a 10% additional duty for economies that have enforced a forced labor import prohibition or committed to doing so through trade agreements. For other economies, a 12.5% additional duty is suggested. Additionally, a textile mechanism is proposed to allow certain apparel imports at reduced tariff rates.
Public hearings on these proposed actions by the USTR are scheduled for July 7, 2026.
