Overview
- India formally disputed the USTR’s forced‑labour tariff proposal at a public hearing on Wednesday, saying the agency exempted about 1,600 items and that those carve‑outs would allow circumvention.
- The USTR opened two Section 301 probes in March and on June 3 proposed roughly 10 to 12.5 percent duties on goods from more than 50 economies, a record the agency is now defending in rulemaking.
- India told the panel the USTR failed to provide economy‑specific evidence linking Indian exports to forced‑labour inputs and that the textiles mechanism unfairly pressures foreign firms to use U.S. inputs.
- Industry groups including FICCI, CII and major U.S. trade associations warned the proposed tariffs would raise costs for exporters, U.S. importers and consumers and would not reliably identify goods made with forced labour.
- The USTR is reviewing written comments and testimony before a final determination, with temporary emergency duties set to expire later in July and litigation and diplomatic protests expected to follow.