Why Does India Face 12.5% 'Forced Labour' Tariff While Others Get 10%? USTR Findings Explained

Key points

• Why Does India Face 12.5% 'Forced Labour' Tariff While Others Get 10%?
• USTR Findings Explained Written By, Last Updated: June 03, 2026, 12:07 IST The Office of the United States Trade Representative said it had found that the policies and practices of 60 economies were “unreasonable and burden or restrict US commerce” Rapid Read India and the US are in the middle of negotiating a bilateral trade agreement aimed at expanding market access and reducing trade barriers.
• Just days after India and the United States resumed talks on a proposed trade agreement, Washington has thrown a fresh curveball into the negotiations.
• The Office of the United States Trade Representative (USTR) has proposed an additional 12.5 per cent tariff on imports from India, placing New Delhi in a group of countries facing higher duties under a new Section 301 investigation into forced labour-linked supply chains.
• In a statement issued on Tuesday,...