The United States Trade Representative (USTR) has proposed trade action against 60 economies, including India, over what it says is a failure to effectively prohibit the import of goods produced with forced labour.
In a statement released on Tuesday, the USTR said it had concluded under Section 301 of the US Trade Act of 1974 that the policies and practices of the identified economies are “unreasonable and burden or restrict US commerce”, making them actionable under US trade law.
India among countries named by USTR
India is one of 54 economies that, according to the USTR, have not imposed or effectively enforced restrictions on imports linked to forced labour. Other countries named include China, Australia, Bangladesh, Japan, Saudi Arabia, Singapore, the United Kingdom and the United Arab Emirates.
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US Trade Representative Ambassador Jamieson Greer said in the statement, “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 unlevel playing field. We will no longer tolerate this disparity.”
The investigations were launched on March 12 this year. According to the USTR, the agency reviewed testimony from nearly 60 witnesses and examined around 500 public comments before reaching its findings.
For nearly a century, the United States has prohibited the importation of goods made with forced labor. It is time for our trading partners to follow suit.
— United States Trade Representative (@USTradeRep) June 3, 2026
Today, Ambassador Greer determined that the acts, policies, and practices of 60 economies related to the failure to… pic.twitter.com/JWyRCDyXHL
Additional tariffs proposed
Following the determination, the USTR has proposed imposing additional duties on products imported from the economies under investigation.
The agency said economies that have already adopted, or committed to adopt, forced labour import bans could face an additional tariff of 10 per cent. All others may be subject to a 12.5 per cent duty. A separate mechanism targeting apparel and textile imports has also been proposed.
According to the USTR, the absence of effective forced labour import restrictions distorts market conditions, enables lower-cost production, harms businesses that comply with labour standards and weakens global efforts to eliminate forced labour practices.
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Comes amid ongoing India-US trade talks
The proposed action comes at a crucial stage in India-US trade relations, with both countries currently negotiating the first phase of a bilateral trade agreement.
Officials from New Delhi and Washington have held several rounds of discussions covering market access, tariffs, agriculture and digital trade. The latest development also follows months of trade friction linked to US President Donald Trump’s reciprocal tariff policy earlier this year.
Despite recurring trade disputes, the United States remains India’s largest trading partner, with bilateral goods trade crossing $120 billion in recent years.
The USTR has invited written comments on the proposed measures until July 6 and plans to hold public hearings on July 7 before making a final decision.
