NEW DELHI: India has pushed back against concerns raised by the United States over forced labour practices after Washington proposed trade action against 60 economies, including India, under a sweeping review of global supply chains. The development comes at a time when both countries are engaged in negotiations aimed at deepening bilateral trade ties.
The Office of the United States Trade Representative (USTR) has proposed additional tariffs ranging from 10% to 12.5% on imports from countries that it says have not adequately prohibited or enforced restrictions on goods linked to forced labour. India is among the economies that could face a proposed 12.5% tariff under the recommendations released following investigations conducted under Section 301 of the US Trade Act.
According to the USTR, several economies have failed to implement effective measures to prevent imports produced through forced labour, creating what it describes as unfair competition for American businesses and workers. The findings are part of a broader US effort to strengthen supply-chain accountability and labour compliance across international trade networks.
Responding to the development, the Government of India emphasized that the country has a robust legal and institutional framework to safeguard workers’ rights and prevent exploitative labour practices. India highlighted that it has ratified key international labour conventions and continues to strengthen enforcement mechanisms to ensure compliance across industries.
Official sources noted that India remains committed to promoting ethical labour standards and responsible business practices while ensuring sustainable economic growth. The government also stressed that labour welfare and worker protection remain central to India’s development agenda. The response comes amid concerns that the proposed US action could affect sectors with strong export links to the American market.
The proposed tariffs are not immediate. The USTR has opened the recommendations for public consultation, with stakeholders invited to submit comments before a final decision is taken. A public hearing is also expected as part of the review process. As a result, the proposed duties may still undergo changes before any implementation.
Trade experts believe the move could add a layer of complexity to ongoing India-US trade discussions. However, both countries have continued to engage on a range of trade and economic issues, and officials on both sides have expressed confidence in maintaining constructive dialogue.
The US investigations were launched earlier this year to determine whether major trading partners had taken sufficient action to prevent the importation of goods produced through forced labour. The probe covered 60 economies, including several key US allies and major global exporters.
India has maintained that its labour ecosystem is governed by comprehensive laws designed to protect workers, eliminate exploitation, and promote fair employment conditions. Government officials have reiterated that India remains committed to international labour obligations and will continue engaging with global partners on issues related to trade, labour rights, and supply-chain transparency.
The latest development underscores the growing intersection of trade policy, labour standards, and supply-chain governance in international commerce. While the USTR proposal has sparked concern among affected economies, the final outcome will depend on consultations, stakeholder feedback, and future negotiations between the United States and its trading partners.
