Why US trade body has threatened India with fresh tariffs amid trade deal talks
The United States has threatened India with new tariffs due to inadequate measures against forced-labour imports while both nations are negotiating a trade deal. The USTR's concerns focus on India's import-control framework rather than allegations of forced labour in Indian exports. If implemented, the proposed tariffs could significantly impact India's trade with the US, particularly in textiles and apparel.
- ▪The USTR has determined that India has failed to effectively block imports made using forced labour.
- ▪The proposed tariffs could reach 12.5% for countries that do not enforce prohibitions on forced-labour imports.
- ▪The investigation does not allege that Indian exports are produced using forced labour.
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Why US trade body has threatened India with fresh tariffs amid trade deal talksUS has threatened fresh tariffs on India, alleging weak curbs on forced-labour imports, even as both countries negotiate a trade deal.Published on: Jun 03, 2026 11:56 AM ISTBy Abhimanyu KulkarniShare viaCopy link India could face fresh US tariffs just as New Delhi and Washington are trying to conclude a trade deal, after the United States Trade Representative (USTR) determined that India and dozens of other economies have failed to adequately block imports made using forced labour.File image: Prime Minister Narendra Modi and US President Donald Trump at Hyderabad House in Delhi (PTI)The proposed action has attracted attention because it is not based on allegations that Indian exports are produced using forced…
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