NEW DELHI: The United States has proposed an additional 12.5% tariff on imports from India as part of a broader trade action targeting 54 countries accused of failing to effectively block goods linked to forced labour from entering their markets. The proposal was announced by the U.S. Trade Representative (USTR) under Section 301 of the U.S. Trade Act.

According to the USTR, India and several other economies have not adequately imposed or enforced prohibitions on imports produced through forced labour. The proposed duties are part of a wider package that would impose tariffs ranging from 10% to 12.5% on 60 economies. Countries viewed as having taken some corrective measures could face a lower 10% rate, while India is among those proposed for the higher 12.5% tariff.

India has strongly rejected the allegations and said it remains engaged with the United States through ongoing Section 301 consultations. The Commerce Ministry indicated that discussions are continuing and emphasized that the proposal is still subject to public review and hearings before any final decision is made.

The move comes at a sensitive time, as India and the United States are simultaneously negotiating a broader bilateral trade agreement. Trade analysts believe the tariff proposal could increase pressure during negotiations but note that the measure is not yet final and could change following stakeholder feedback.

Public comments on the proposal are expected through early July, with U.S. hearings scheduled afterward. If implemented, the tariffs could affect a range of exports and add uncertainty to global trade flows already facing geopolitical and economic pressures.