The US Trade Representative (USTR) has proposed trade action against 60 economies, including India, after determining they failed to impose and enforce prohibitions on forced labour imports.
The list includes countries such as Australia, China, Japan, and the UK, with India among 54 economies that have not effectively enforced a prohibition on imports made with forced labour.
US trade representative ambassador Jamieson Greer said the failure of major trading partners to address forced labour imports is unacceptable, creating an unlevel playing field for American workers.
The USTR has proposed additional duties on products from the investigated economies, with 10% tariffs for those that have adopted forced labour import prohibitions and 12.5% duties for others.
The investigations were launched in March and received nearly 60 witnesses and 500 comments before reaching the findings.
The proposed action comes at a sensitive time in India-US economic relations, with both countries working towards a bilateral trade agreement.
The USTR has invited written comments until July 6 and will hold public hearings on July 7 before taking a final decision.