India Urges US to Rethink Proposed Tariffs Amid Forced Labour Allegations

India has formally requested the US to reconsider a 12.5% tariff on its products, denying claims of failing to ban forced labour imports. New Delhi is open to dialogue with the US to address issues, highlighting insufficient evidence by the US in its allegations.

India has formally contested the United States' proposal to impose a 12.5% tariff on Indian goods, countering allegations that it has failed to curb the import of products made with forced labour. The Indian government has extended an offer for dialogue with the US Trade Representative (USTR) to resolve any specific concerns.

Responding to the USTR's Section 301 investigation report, India criticized the lack of specific evidence demonstrating unfair practices on its part. The USTR had initiated two investigations in March 2026, scrutinizing 60 economies about forced labour and industrial capacity concerns. Findings released in June proposed tariffs on 54 economies, including India, China, and others.

New Delhi insists that the USTR has not provided substantial evidence that the absence of forced labour import bans significantly alters market conditions. India also took issue with what it sees as a generalized assessment applied to all examined economies, lacking country-specific analysis.