The United States Trade Representative (USTR), under Section 301 of the Trade Act of 1974, has proposed to impose an additional up to 12.5 per cent tariff on India and 59 other economies over allegations of using forced labour to produce imported goods.

In a statement, USTR claimed that 60 economies have failed to enforce rules against imported goods made via forced labour.

"Under Section 301 of the Trade Act of 1974 that the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor is unreasonable and burdens or restricts U.S. commerce, and are thus actionable under Section 301(b) of the Trade Act," the statement read.

Ambassador Jamieson Greer said 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 added.

“We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally,” he mentioned.

For economies that impose a forced labour import prohibition, that have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or economies that have imposed a partial regime with the effect of preventing the importation of certain forced labour goods, the US Trade Representative proposes 10% as the rate of additional duties.

For all other economies, the US Trade Representative proposes 12.5 per cent as the rate of additional duty.

The USTR also proposes a textile mechanism that would allow for a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate, said the statement.

The USTR will hold hearings about the proposed actions on July 7, 2026.