June 03, 2026 09:30 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Cabinet approves Rs. 10,000 crore support package to stabilise ATF prices for airlines | Delhi hotel inferno kills 21, many foreign nationals among victims | Mamata's TMC splits wide open as 58 MLAs back expelled Ritabrata as Bengal LoP | Cockroach Janta Party goes offline: Abhijeet Dipke set to return to Delhi, plans Jantar Mantar protest over exam lapses | 'You're f***ing crazy': Trump blasts Netanyahu over Israel's escalation in Lebanon | What began as a domestic dispute ended in six deaths in US: Iowa community in shock | India, Australia take defence ties to next level with major security push | Will Annamalai float his own party? Cryptic Coimbatore posters spark buzz | 'Fake signature' row: TMC expels MLAs Ritabrata Banerjee, Sandipan Saha over 'anti-party activities' | 'Fake signature' probe: CID forms SIT; Abhishek Banerjee skips Bhavani Bhavan summon, seeks more time
India-US
A cargo ship. Photo: Unsplash

USTR proposes 12.5 percent duties on India, others over forced labour violations

| @indiablooms | Jun 03, 2026, at 05:04 pm

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.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.
Related Videos
RBI announces repo rate cut Jun 06, 2025, at 10:51 am
FM Nirmala Sitharaman presents Budget 2025 Feb 01, 2025, at 03:45 pm
Nirmala Sitharaman on Budget 2024 Jul 23, 2024, at 09:30 pm