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Textiles
How forced labour concerns in supply chains put India under US lens
15 Jun '26
4 min read
Pic: Shutterstock
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India faces potential additional US tariffs of 10–12.5 per cent under a USTR proposal linked to forced-labour compliance concerns.
The scrutiny focuses less on India's labour laws and more on supply-chain traceability, particularly imported inputs from China.
The proposal highlights growing pressure on exporters to prove transparent, risk-free sourcing in global value chains.
India is among 60 economies targeted by a new United States Trade Representative (USTR) proposal that could impose 10-12.5 per cent additional US tariffs, raising a key question: what put the country on Washington’s watchlist?
The move, initiated under Section 301 of the US Trade Act of 1974, is part of Washington’s broader effort to crack down on products linked, directly or indirectly, to forced labour.
The USTR argues that the countries identified have failed to adequately prohibit or enforce restrictions on goods produced with forced labour. While the proposal is still subject to consultations and hearings before any final decision is taken, its implications have already sent ripples through export-oriented industries across the globe, including India.
India faces potential additional US tariffs of 10–12.5 per cent under a USTR proposal linked to forced-labour compliance concerns.
The scrutiny focuses less on India's labour laws and more on supply-chain traceability, particularly imported inputs from China.
The proposal highlights growing pressure on exporters to prove transparent, risk-free sourcing in global value chains.
India’s presence on the list raised some eyebrows, given that the country outlawed bonded labour five decades ago through the Bonded Labour System (Abol
