The United States has proposed a new 12.5% tariff on imports from India as part of a broader trade action targeting countries accused of failing to effectively prevent goods made with forced labour from entering their markets. The proposal was announced by the Office of the United States Trade Representative (USTR) following an investigation into labour practices among key trading partners.
According to the USTR, 54 economies, including India, China, Japan, South Korea, Brazil and Switzerland, failed to adequately enforce bans on forced-labour imports and could face the higher 12.5% tariff. Meanwhile, countries such as Canada, Mexico, the European Union, Indonesia and Pakistan are expected to face a lower 10% tariff.
US Trade Representative Jamieson Greer said the failure of major trading partners to address forced labour creates an unfair competitive environment for American workers. He stressed that the US would no longer tolerate trade practices that indirectly encourage or sustain forced labour globally.
If implemented, the new tariffs could impact trade relations between the United States and several major economies, including India. The proposal is part of Washington’s broader effort to strengthen labour standards and address trade imbalances through stricter import policies.
