The Indian government has stated that it is engaged with the United States on a probe related to forced labour concerns, following a proposal by the US Trade Representative (USTR) to impose a 12.5% tariff on imports from 60 economies, including India. The USTR released its findings on June 2, 2026, as part of a forced labour investigation, and proposed additional tariffs on imports from the identified economies.
Government Response
In an official statement, the Indian government emphasised that it is actively engaged with US authorities to address any concerns raised in the investigation. The government reiterated its commitment to ensuring that labour practices in India comply with international standards and that there is no forced labour in the country.
USTR Findings and Tariff Proposal
The USTR's investigation identified forced labour practices in certain sectors across 60 economies. As a result, the USTR proposed an additional 12.5% tariff on imports from these economies, which would affect a wide range of goods. The proposal is part of broader US efforts to combat forced labour globally.
India has been among the economies listed in the USTR's findings. The Indian government has sought clarifications and is working to provide evidence that its labour laws and enforcement mechanisms are robust and effective.
Implications for Trade
The proposed tariff could have significant implications for India-US trade, which has been growing steadily. Indian exporters, particularly in sectors such as textiles, apparel, and agriculture, may face increased costs if the tariff is implemented. The Indian government is expected to negotiate with the US to resolve the issue and avoid any negative impact on bilateral trade.
The development comes amid broader trade tensions between India and the US, though both countries have expressed a desire to strengthen economic ties. The Indian government has assured domestic industries that it will take all necessary steps to protect their interests.
