Overview
- The U.S. Trade Representative has placed India in the higher 12.5% tier of a proposed Section 301 tariff schedule aimed at imports linked to forced labour, with public hearings set to begin on July 7.
- The USTR said India lacks a dedicated law that bars imports made wholly or partly with forced labour and has no customs-authority regime to block such goods, a gap that underpins the higher tariff ranking.
- Indian government officials and industry bodies told the USTR they will submit evidence of existing labour protections and are preparing rules on risk‑based due diligence and supply‑chain traceability to address U.S. concerns.
- Export sectors most exposed include textiles, apparel, solar modules, seafood and certain industrial goods, and exporters are tightening audits and origin-tracing to protect U.S. market access.
- The dispute reflects a broader U.S. effort to rebuild trade enforcement after recent court limits on emergency tariffs, and near-term deadlines—written comments, July hearings and July 24 temporary tariff expiries—will shape whether reforms, negotiations or legal challenges change the final outcome.