By TRH World Desk
US Proposes New Tariffs on India and 59 Other Economies Over Forced Labour Investigation
New Delhi, June 3, 2026 — The United States has proposed imposing additional tariffs of 10% to 12.5% on imports from India and 59 other economies following a sweeping investigation into global forced-labour enforcement practices, a move that could trigger fresh trade tensions between Washington and several major trading partners.
According to findings released by the Office of the United States Trade Representative (USTR), India was among the countries found to have failed to adequately impose and enforce prohibitions on imports produced through forced labour. The findings form part of a broader investigation covering dozens of economies across Asia, Africa, Latin America and Europe.
The USTR report concluded that India’s failure to impose and effectively enforce a forced-labour import prohibition is “unreasonable” and burdens or restricts US commerce. The document stated that the acts, policies and practices related to the enforcement gap have adversely affected American commercial interests.
The findings place India alongside several other economies, including Hong Kong and Indonesia, which were also cited for deficiencies in enforcing restrictions on goods linked to forced or compulsory labour.
The proposed tariffs would come on top of existing duties and could affect a wide range of exports to the United States. While Washington has not yet released a final product-wise tariff schedule, trade analysts expect labour-intensive sectors such as textiles, apparel, leather products, engineering goods and certain manufacturing exports to face heightened scrutiny.
The move reflects a growing trend in US trade policy, where labour standards and supply-chain transparency are increasingly being linked to market access. Successive administrations have expanded the use of trade enforcement tools aimed at preventing products allegedly linked to forced labour from entering the American market.
For India, the proposal comes at a sensitive time as New Delhi and Washington continue discussions on expanding bilateral trade and deepening strategic cooperation. India has repeatedly argued that its labour regulations are governed by domestic laws and that enforcement mechanisms have been strengthened in recent years through labour-code reforms and digital compliance systems.
Trade experts warn that if implemented, the new tariffs could complicate ongoing efforts to increase bilateral trade volumes and attract greater manufacturing investment under global supply-chain diversification initiatives.
The proposed measures are expected to undergo consultations and review before a final decision is announced. Indian officials have not yet issued a formal response to the latest USTR findings.
The development signals that labour standards are becoming an increasingly important factor in global trade policy, with economic and geopolitical implications extending far beyond traditional tariff disputes.
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