India urges US to review proposed 12.5% tariff over forced labour findings
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India has urged the United States to reconsider its proposal to impose an additional 12.5 per cent tariff on imports from the country under a Section 301 investigation, saying the findings of the Office of the United States Trade Representative (USTR) on forced labour contain legal and factual flaws.
Participating in a public hearing, Joint Secretary in the Department of Commerce Brij Mohan Mishra said India takes the elimination of forced labour seriously as a constitutional obligation and as a matter of international law and principle. He said India has genuine engagement on the issue and expressed concerns over the USTR's findings against the country.
The USTR launched two Section 301 investigations on March 11 and 12, 2026, examining around 60 economies over concerns related to forced labour and excess industrial capacity. On June 3, it released its findings on the forced labour investigation and proposed additional tariffs on 54 economies.
Under the proposal, India and China would face an additional 12.5 per cent tariff. Canada, the European Union, Indonesia, Mexico, Pakistan, and Ecuador would face a 10 per cent tariff as they have legal prohibitions on forced labour imports but are alleged to have inadequately enforced them.
India argued that there is insufficient evidence to show that its regulatory framework gives Indian exporters an unfair advantage over US industries. It also said there is no evidence linking its major exports to the US with forced labour inputs. According to India's submission, the USTR failed to establish the required causal link between the absence of an import prohibition and harm to US commerce.
The USTR held public hearings this week as part of its consultation process before taking a final decision on the proposed tariffs. It will consider written submissions, stakeholder comments, and testimony before deciding whether to implement the measures.
Indian exports to the US are already subject to a temporary 10 per cent reciprocal tariff, making the proposed 12.5 per cent duty an additional concern during ongoing bilateral trade negotiations.