India has formally urged the United States to reconsider its proposal to impose an additional 12.5% tariff on imports from the country under a section 301 investigation, arguing that the Office of the United States Trade Representative’s findings on forced labour contain legal and factual flaws.
Participating in the public hearing, Joint Secretary in Department of Commerce Brij Mohan Mishra submitted that in light of India’s genuine engagement on forced labour issues, it strongly expresses its concerns at the USTR’s (US Trade Representative) determination, PTI reported.
India takes the elimination of forced labour seriously as a constitutional obligation, and as a matter of international law and principle. “India would like to highlight its concerns with the USTR’s report and findings against India,” he said.
The USTR launched two Section 301 investiagtions on March 11 and 12, 2026, examining about 60 economies over concerns relating to forced labout and excess industrial capacity. On June 3, the USTR released its findings on the forced labour investigation and proposed additional tariffs on 54 economies.
India and China are among the 54 economies that would face an additional 12.5% tariff. Canada, the European Union, Indonesia, Mexico, Pakistan and Ecuador would face a 10% tariff because they have legal prohibitions on forced labour imports but are alleged to have inadequately enforced them.
The submission stated that there is insufficient evidence showing that India’s regulatory framework gives Indian exporters an unfair advantage over US industries. India also argued that evidence relating to its major exports to the US does not indicate any linkage with forced labour inputs. According to India, the USTR failed to establish the required casual link between the alleged absence of an import prohibition and harm to US commerce.
The USTR held public hearings this week as part of the consultation process before taking a final decision on the proposed tariffs. The proposed tariffs are not yet final. The USTR will consider written submissions, stakeholder comments and testimony before deciding whether to implement them.
Indian exports to the US are already subject to a temporary 10% reciprocal tariff, making the proposed 12.5% duty an additional source of pressure during ongoing bilateral trade negotiations.
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