Commerce Minister Piyush Goyal with US Trade Representative Jamieson Greer

The United States has announced a proposal to impose fresh tariffs on sixty countries, including India, citing concerns that goods imported from these economies are produced using forced labour.

The measure, unveiled by the Office of the US Trade Representative (USTR), involves an additional tariff of ten per cent and an extra duty of 12.5 per cent on products from these nations. The USTR stated that investigations had revealed widespread failures to prohibit the importation of goods made with forced labour, describing such practices as unreasonable and burdensome to US commerce.

According to the USTR, fifty-four economies have been identified as failing to impose or effectively enforce prohibitions on forced labour imports. The list includes major economies such as Australia, China, India, Israel, Japan, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Turkiye, the United Arab Emirates, and the United Kingdom.

The statement explained that economies which already have some form of prohibition, or have committed to implementing such measures through trade agreements, would face an additional tariff of ten per cent. Those without such commitments would be subject to a 12.5 per cent duty.

The proposed action also introduces a textile mechanism, allowing a certain volume of apparel and textile imports from some economies to enter the United States at a reduced Section 301 tariff rate. Section 301 of the Trade Act of 1974 provides the legal basis for such measures, enabling the US to respond to acts, policies, and practices deemed unfair or harmful to American commerce. The USTR emphasised that the proposed duties would apply to all products from the investigated economies, and public comments have been invited on the move.

In its statement, the USTR highlighted that economies imposing partial regimes or reciprocal trade agreements aimed at preventing forced labour imports would face the lower ten per cent tariff. For all other economies, the higher 12.5 per cent duty would apply.

The textile mechanism was described as a way to balance enforcement with limited concessions in specific sectors. Six economies were flagged for failing to effectively enforce prohibitions, including the European Union, Pakistan, and Canada.

Ambassador Jamieson Greer remarked that the failure of key trading partners to address forced labour imports was unacceptable, adding that it created an unlevel playing field for American workers competing globally.

This development comes at a sensitive time for India, as negotiators are engaged in talks with a visiting US team to finalise the bilateral trade agreement. Sources indicated that securing preferential market access against competitors would be a priority for Indian negotiators, alongside seeking relief from Section 301 investigations.

The talks, scheduled between 1 and 4 June, are being led by US Chief Negotiator Brendan Lynch and India’s Additional Secretary Darpan Jain. The Ministry of Commerce confirmed that the round would finalise details of the interim pact and advance negotiations under the broader Bilateral Trade Agreement. Discussions are expected to cover market access, non-tariff measures, customs and trade facilitation, investment promotion, and economic security alignment.

The timing of the US proposal underscores the complexity of ongoing trade negotiations, as India seeks to balance its economic interests with compliance pressures from Washington.

The broader context of these talks reflects the US administration’s determination to establish a global tariff architecture that addresses forced labour concerns, while India continues to push for a mutually beneficial agreement that enhances its competitiveness in global markets.

ANI