Overview
- The U.S. Trade Representative published findings on Tuesday proposing additional Section 301 duties of 10% or 12.5% on imports from 60 economies it says failed to prohibit or effectively enforce bans on goods made with forced labour.
- The proposal assigns a 10% additional duty to economies that have some forced‑labour import prohibitions or reciprocal commitments and a higher 12.5% rate to the remaining countries, with India placed in the 12.5% group.
- The USTR would exempt specific items including energy, rare earths and certain metals, pharmaceuticals, some agricultural goods and aircraft parts and it proposed a separate textile mechanism that allows limited apparel volumes at reduced rates.
- The proposal is not final and will be shaped by a public comment period with written comments due July 6 and public hearings starting July 7 before any duties could be implemented.
- Officials say the move is part of the administration’s effort to rebuild a country‑specific tariff toolkit after a February Supreme Court setback and it arrives during high‑stakes India–U.S. trade talks that could seek carve‑outs or negotiation over the measures.