Ahmedabad Times

New Delhi: In a transfer that would add strain on India to shortly conclude a bilateral commerce take care of the US, the US Commerce Consultant on Wednesday proposed a further 12.5% obligation on 54 international locations, together with India, over alleged failure to limit imports of products produced with pressured labour in third international locations.

It has proposed new tariffs on most Indian items.

India stated it’s engaged with the US on investigations beneath Part 301 of the US Commerce Act of 1974, regarding pressured labour and extra industrial capability. This comes at a time when India and the US are engaged in a three-day dialogue in New Delhi to finalise the small print of an interim deal forward of the proposed bilateral commerce agr eement (BTA).

In the meantime, Canada PM Mark Carney stated the nation shares US’ considerations about using pressured labour and would quickly suggest its personal measures to clamp down additional on the follow.

‘No Last Determination on Levy But’
“India stays engaged with the US on the matter as part of Part 301 proceedings,” the commerce and business ministry stated in an announcement. “India can be parallelly engaged with the US for finalisation of a framework settlement…”
The USTR proposal follows investigations launched towards 60 international locations over what it described as their failure to impose and successfully implement bans on imports of products made with pressured labour. “Particularly, the US Commerce Consultant proposes extra duties on all merchandise of the investigated economies, besides as supplied in annex A,” it stated.
The annex consists of meat merchandise, meals gadgets, chemical substances, sure coal, ores, pure gasoline, petroleum merchandise, uranium and prescription drugs, amongst others.

The USTR stated its investigation indicated “that the acts, insurance policies and practices of India associated to the failure to impose and successfully implement a pressured labour import prohibition are unreasonable and burden or limit US commerce.”

Commerce specialists stated India has a number of grounds to problem the probe and that it could possibly be a strain tactic to make New Delhi yield to different calls for.

The commerce and business ministry famous that the proposed tariffs should not remaining, and stakeholders can take part in public hearings to be held on July 7. “The USTR will contemplate the feedback and testimony acquired earlier than taking a remaining resolution on the proposed measures,” it stated.

Additionally, merchandise coated beneath Part 232 tariffs, reminiscent of metal and aluminium, and sure different merchandise are excluded from the tariff proposals. “A particular mechanism has additionally been proposed for textile and attire merchandise that would permit a sure quantity of imports from chosen economies to enter the US at decrease tariff charges,” the ministry stated, though particular charges haven’t but been finalised.

The USTR had launched two separate Part 301 investigations on March 11 and 12, 2026, overlaying 60 economies over considerations associated to pressured labour and extra industrial capability. On June 2, it issued its findings within the pressured labour investigation and proposed extra tariffs on imports from 60 economies. The proposal consists of extra 10% tariff on imports from Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan, and extra 12.5% tariff on imports from 54 different economies, together with India and China.

Stress Tactic
“The transfer is a strain tactic for us to yield on commerce and oil-related calls for. India needs to be cautious,” a commerce professional stated on the situation of anonymity.

India needs to be ready for extra Part 301 tariffs in areas reminiscent of extra capability, the place the US is conducting one other investigation, the individual added.

Suppose tank GTRI stated New Delhi ought to problem the ambit of the probe.

“The present investigation exceeds the scope of Part 301, which offers with market-access limitations confronted by the US corporations within the nation being investigated and never what it imports and from the place,” GTRI founder Ajay Srivastava stated.

India should argue that the US is trying to impose its most well-liked import-control framework on different international locations by way of unilateral commerce measures, which is outdoors the scope of Part 301, he stated.

“India can also argue that considerations relating to pressured labour, significantly in international locations reminiscent of China, are sometimes product-specific and that the US itself stays a significant importer of lots of the merchandise at challenge,” Srivastava stated. “Therefore, broad country-wide tariff actions are an inappropriate response when the issue could possibly be restricted to some merchandise.”