United States threatens 12.5% tariff on Indian goods over forced‑labour concerns

The U.S. Trade Representative (USTR) has placed India on a list of about 60 economies accused of allowing products made with forced labour into global supply chains. Under Section 301, the USTR is proposing additional tariffs of 10% to 12.5% on imports from these countries. India is among 54 economies deemed to lack effective restrictions, with a suggested 12.5% levy that could affect Indian solar, electronics and textile exporters.

The move comes as the United States and India negotiate a bilateral trade agreement. The USTR report also cites other major economies such as China, Russia, Japan and Brazil, and notes that a subset of countries may face a 10% tariff instead. Indian officials point to existing domestic laws against bonded labour, but experts warn that reliance on intermediate inputs from forced‑labour‑linked supply chains could bring Indian firms under U.S. scrutiny.