US Proposes 12.5 Percent Tariff on Indian Imports

The U.S. Trade Representative has proposed an additional 12.5 percent tariff on India for failing to curb imports made with forced labor. This move complicates ongoing bilateral trade talks as Washington identifies India as a key intermediary in supply chains linked to Chinese forced labor.

Insights:

The United States proposed a 12.5% tariff on imports from India for failing to curb goods produced with forced labor. The proposal targets 54 economies that lack forced-labor import prohibitions and coincides with bilateral trade negotiations in New Delhi. The U.S. Trade Representative (USTR) office released the proposal as part of a Section 301 investigation to rebuild its global tariff framework.

### Forced Labor and Trade Barriers The USTR office released a 92-page report on Monday labeling Indian trade policies unreasonable and a burden on American commerce. U.S. Trade Representative Jamieson Greer said the lack of forced-labor prohibitions creates an unlevel playing field for domestic workers.

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