The United States Trade Representative (USTR) has threatened India with fresh tariffs, citing concerns over the country's import-control framework and its failure to block imports made using forced labour.
India is among 54 economies that have failed to impose and effectively enforce a prohibition on imports made with forced labour, according to the USTR.
The proposed tariffs are part of a broader investigation into the acts, policies, and practices of 60 economies related to the failure to impose and effectively enforce a prohibition on imports made with forced labour.
The USTR has proposed additional duties on imports from the investigated economies, with countries that already maintain a forced-labour import prohibition facing a 10% tariff and all other economies facing a 12.5% tariff.
India is among the countries that could face the higher tariff category if the proposal is implemented.
The proposed duties would apply broadly across products, but the USTR has also proposed a separate textile mechanism under which a specified volume of apparel and textile imports could enter the United States at a lower tariff rate.
The proposal is currently in the consultation phase, with requests to participate in hearings due by June 22 and written comments due by July 6.
Trade experts have questioned the legal basis of the investigation, arguing that it stretches the traditional scope of Section 301 and may not justify broad country-wide tariff actions.
