- The United States Trade Representative (USTR) has proposed additional import duties on goods from 60 economies, including India.
- The proposal is based on concerns that these countries have not adequately banned or enforced restrictions on goods made using forced labour.
- The action has been proposed under Section 301 of the US Trade Act, 1974, which allows the US to respond to trade practices it considers unfair.
- Countries with some form of forced labour import restrictions may face an additional 10% duty.
- Countries without adequate legal prohibitions or enforcement mechanisms could face a 12.5% additional duty on exports to the US.
- India is among the 54 economies placed in the higher-risk category.
- Other countries listed include China, Japan, South Korea, Bangladesh, Brazil, Vietnam, the UK, UAE, Sri Lanka, Australia, and Switzerland.
- The proposal comes while India and the US are negotiating an interim trade agreement.
- A US delegation led by chief negotiator Brendan Lynch is currently in New Delhi for trade discussions.
- The move could add new compliance requirements related to labour standards and supply-chain transparency.
- The US has banned imports made with forced labour under its domestic laws for decades.
- USTR argues that countries without similar restrictions allow lower-cost goods to enter global markets, creating unfair competition.
- According to the report, economies under investigation account for approximately 99.4% of total US imports, making the issue significant for global trade.
- The proposed 12.5% tariff is not yet final but signals growing US focus on labour compliance and supply-chain accountability.