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The projected 12.5% tariff connected India by the U.S. Trade Representative (USTR) nether Section 301 investigations goes beyond the scope of the provision, and New Delhi should situation the ambit of the probe, deliberation vessel GTRI said connected Wednesday (June 3, 2026).
The 12.5% tariff exceeds the USA's WTO commitment.
The U.S. Trade Representative has projected to enforce 12.5% further duties connected 54 countries, including India, for failing to prohibit the import of goods produced with forced labour.
The enactment follows investigations launched against 60 countries implicit what the USTR described arsenic their nonaccomplishment to enforce and efficaciously enforce bans connected imports made with forced labour.
"The existent probe exceeds the scope of Section 301, which deals with market-access barriers faced by the U.S. firms successful the state being investigated and not what it imports and from where", the Global Trade Research Initiative (GTRI) said.
It added that the probe is not based connected allegations that Indian exports are produced utilizing forced labour. Rather, the USTR enactment focuses connected whether countries prohibit imports made with forced labour successful 3rd countries.
GTRI laminitis Ajay Srivastava said India indispensable reason that the United States is attempting to enforce its preferred import-control model connected different countries done unilateral commercialized measures, which is extracurricular the scope of conception 301.
"India whitethorn besides reason that concerns regarding forced labour, peculiarly successful countries specified arsenic China, are often product-specific and that the U.S. itself remains a large importer of galore of the products astatine issue. Hence, wide country-wide tariff actions are an inappropriate effect erstwhile the occupation could beryllium constricted to a fewer products," helium said.
GTRI besides views these tariffs arsenic portion of a broader effort by Washington to summation unit connected India, arsenic some sides are negotiating a bilateral commercialized agreement.
India should beryllium prepared for further Section 301 tariffs successful areas specified arsenic excess capacity, it said.
The Office of the United States Trade Representative (USTR) launched 2 abstracted Section 301 investigations connected March 11 and 12, 2026, covering 60 economies implicit concerns related to forced labour and excess concern capacity.
USTR has present issued its findings successful the forced labour probe and projected further tariffs connected imports from 54 economies.
The connection includes a 10% tariff connected imports from Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan, and a 12.5% tariff connected imports from 48 different economies, including India and China.
Pakistan and Indonesia are India's competitors successful the commercialized front.
The measurement remains a connection and has not yet been finalised.
Lower tariffs person been projected for textiles, though circumstantial rates person not yet been finalised.
The connection has present entered the consultation phase. Interested parties tin taxable requests to look astatine hearings and summaries of grounds by June 22, 2026, portion written comments are owed by July 6.
USTR is scheduled to clasp hearings connected July 7.
A last determination is expected successful precocious June oregon July, perchance earlier the expiry of the impermanent Section 122 tariffs (10%) connected July 24, 2026.
Once finalised, the tariffs could instrumentality effect astir immediately.
The probe is not based connected allegations that Indian exports usage forced labour, but connected whether India restricts imports linked to forced labour successful 3rd countries.
