US's 12.5% Forced-Labour Tariff on India: What It Means

USTR proposes an extra 12.5% tariff on India and 53 other nations for not banning forced-labour imports.

It flows from a Section 301 probe of 60 economies; comments close July 6, hearing July 7, 2026.

Textiles are the soft spot: India sent ~$11bn of apparel to the US last year, ~40% of its exports.

India calls the allegations 'completely false' and wants the issue settled inside ongoing trade talks.

Nothing is final yet — it is a proposal in a public-comment window, not an enforced duty.