India to Contest U.S. Forced‑Labour Tariff Proposal

India will mount a coordinated challenge to a U.S. proposal that would add a 12.5% duty on Indian imports under a Section 301 forced‑labour investigation. The challenge will be presented to the Office of the U.S. Trade Representative’s Section 301 Committee on July 8, with industry groups such as the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Confederation of Indian Industry (CII) testifying alongside officials from the Ministry of Commerce and the Agricultural and Processed Food Products Export Development Authority.

India’s officials argue that Washington’s findings are legally flawed, lack evidence, and could disrupt supply chains linking the world’s largest and fifth‑largest economies. They cite a robust domestic legal regime, including constitutional provisions and labour codes, and note that Indian exporters already operate under compliance programmes. The Indian side warns that the additional duty would raise costs for U.S. manufacturers that depend on Indian inputs and urges a compliance‑based approach through the existing India‑U.S. Trade Policy Forum rather than punitive tariffs.