The US government is proposing a new tariff of 12.5% on imports from India, along with 59 other countries, due to concerns over forced labor practices. This announcement came on June 3, 2026, as part of a broader move to impose at least 10% tariffs on goods from major trading partners that have not adequately addressed forced labor issues, according to livemint.com.
The decision follows a US investigation into the importation of goods made with forced labor. Ambassador Jamieson Greer stated that the failure of key trading partners like India to tackle this issue creates an unfair competitive environment for American workers. The US plans to no longer tolerate such disparities, aiming to protect domestic labor standards and ensure fair trade practices.
This tariff proposal marks a significant escalation in trade measures targeting countries accused of not enforcing forced labor bans. India, a major exporter to the US, faces a higher tariff rate than the minimum 10% applied to most countries, underscoring the seriousness of the US stance. The move aligns with a global trend of increasing scrutiny on supply chains and labor conditions, impacting bilateral trade relations.
The US trade authorities will finalize the tariff rates after a public comment period and further review. The implementation of the 12.5% tariff on Indian imports is expected to affect sectors reliant on labor-intensive manufacturing, with potential implications for trade volumes and pricing between the two countries.