WASHINGTON/NEW DELHI, JUN 3 (PTI): The United States has proposed a 12.5% tariff on imports from 54 countries, including India, citing alleged failure to prohibit goods made with forced labour. The proposal comes as India and the US are holding three-day negotiations in New Delhi to finalise the first tranche of a bilateral trade agreement.
The talks began Tuesday and are aimed at advancing a framework for an interim trade deal announced earlier this year. The Indian commerce ministry said New Delhi remains engaged with Washington on two Section 301 investigations—one concerning forced labour and another on excess industrial capacity—while simultaneously working toward finalising the trade framework.
According to the US Trade Representative (USTR), the proposed tariffs follow investigations initiated in March under Section 301 of the Trade Act of 1974 involving 60 countries. The agency said the measure is not final and stakeholders may request hearings or submit testimony by June 22, with hearings scheduled for July 7.
The proposal covers most goods, with limited exceptions, and includes a special mechanism for textiles and apparel that could allow a set volume of imports from selected economies at reduced tariff rates.
Countries facing the proposed 12.5% duty include India, China, Japan, Australia, the UK, Vietnam, South Korea, Saudi Arabia, Russia, and several others. A separate 10% tariff is proposed for Canada, Mexico, Indonesia, Pakistan, the European Union, and Ecuador.
The USTR said the actions, policies, and practices of these economies regarding forced labour enforcement are deemed unreasonable and restrictive to US commerce.
Stakeholders can submit comments during the review period as the proposal remains subject to change before any final implementation decisions are made finalised.
Thursday, June 4, 2026