The United States has unveiled a proposal that could impose new import duties on products arriving from 60 economies, including India and China, as part of a broader effort to tighten trade measures linked to labour standards and supply chain practices.
The proposal, put forward by the Office of the United States Trade Representative (USTR), is currently under review and has not yet been approved. If implemented, it could result in tariffs ranging from 10% to 12.5% on selected imports entering the American market.
Labour Standards at Centre of Trade Review
According to the USTR, the review focuses on whether trading partners have adopted and enforced measures to prevent goods allegedly produced through forced labour from entering international supply chains.
Countries that have enacted restrictions but are considered ineffective in enforcing them could face tariffs of up to 10%, while economies found lacking both legal prohibitions and enforcement mechanisms may be subject to duties as high as 12.5%.
US Trade Representative Jamieson Greer said Washington is seeking stronger action from trading partners to address concerns surrounding forced labour-linked products and their impact on global competition.
India Among Economies Under Scrutiny
India and China have been included among the economies identified by US authorities as having insufficient safeguards against imports associated with forced labour, according to the findings released alongside the proposal.
The move comes at a sensitive time, with Indian and American officials currently engaged in discussions aimed at advancing a bilateral trade agreement.
Section 301 Back in Focus
The proposed action has been initiated under Section 301 of the US Trade Act of 1974, a provision that allows Washington to investigate foreign trade practices and respond with measures such as tariffs when it believes US commercial interests are being harmed.
The same legal framework was used during President Donald Trump’s first term to impose tariffs on a wide range of Chinese imports.
Wider Global Impact Possible
The list of economies under review extends beyond India and China and includes several major US trading partners across Europe, Asia, North America and the Gulf region.
While no final decision has been taken, trade analysts say the proposal signals Washington’s growing emphasis on labour standards and supply-chain compliance as key components of its trade policy. Any eventual implementation could affect exporters across multiple sectors and reshape trade flows into the United States.
