India must challenge USTR's proposed 12.5% tariff on India under Sec 301 investigations: GTRI
The U.S. Trade Representative has proposed a 12.5% tariff on India as part of a broader investigation into forced labor practices. The Global Trade Research Initiative argues that this tariff exceeds the scope of Section 301 and should be challenged by India. The proposal is currently in the consultation phase, with a final decision expected in the coming months.
- ▪The proposed 12.5% tariff on India is part of a broader investigation involving 54 countries over forced labor import violations.
- ▪GTRI claims the investigation exceeds the scope of Section 301, which is meant for market-access barriers, not import restrictions.
- ▪India is encouraged to argue against the U.S. imposing its import-control framework on other nations.
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The proposed 12.5% tariff on India by the U.S. Trade Representative (USTR) under Section 301 investigations goes beyond the scope of the provision, and New Delhi should challenge the ambit of the probe, think tank GTRI said on Wednesday (June 3, 2026).The 12.5% tariff exceeds the USA's WTO commitment.The U.S. Trade Representative has proposed to impose 12.5% additional duties on 54 countries, including India, for failing to prohibit the import of goods produced with forced labour.
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