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U.S. proposes up to 12.5% tariff on 60 countries, including India
USTR claimed that 60 economies have failed to enforce rules against imported goods made with forced labor.
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IANS - Wed, 03, Jun 2026
- 02:35 EDT
- 33
FILE PHOTO: A U.S. flag and a "tariffs" label are seen in this illustration taken April 10, 2025. / REUTERS/Dado Ruvic/Illustration/File Photo
The United States Trade Representative (USTR), under Section 301 of the Trade Act of 1974, has proposed imposing an additional tariff of up to 12.5% on India and 59 other economies over allegations of using forced labor to produce imported goods.
In a statement, the USTR claimed that 60 economies have failed to enforce rules against imported goods made with forced labor.
"Under Section 301 of the Trade Act of 1974, 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 are unreasonable and burden or restrict 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 uneven 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 the 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 said.
For economies that impose a forced labor import prohibition, have committed to impose and enforce such a prohibition through an Agreement on Reciprocal Trade, or have imposed a partial regime with the effect of preventing the importation of certain forced labor goods, the U.S. trade representative proposes a 10% rate of additional duties.
For all other economies, the U.S. trade representative proposes a 12.5% rate of additional duties.
The USTR also proposes a textile mechanism that would allow a certain volume of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate, the statement said.
The USTR will hold hearings on the proposed actions July 7, 2026.
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