India Challenges Proposed US Forced-Labour Tariffs, Calls Policy Inconsistent

India has strongly opposed a US proposal to impose additional tariffs on imports linked to forced labour concerns, arguing that the plan is inconsistent and should instead be addressed through bilateral trade negotiations.

Appearing before a panel of the US Trade Representative (USTR) , Brij Mohan Mishra , Joint Secretary in the Ministry of Commerce, said the proposal weakens its own objective by exempting nearly 1,600 products that cannot be produced or grown in the United States. Such exemptions, he argued, could undermine efforts to prevent circumvention and ensure uniform action against forced labour in global supply chains.

Mishra also criticised a mechanism that offers lower tariff rates for certain textile exports made using US-origin cotton and related inputs. He said the policy influences sourcing decisions of foreign manufacturers without fully addressing the stated concern of forced labour.

India, however, made it clear that it remains open to engagement. Mishra said all concerns should be handled within the framework of India-US bilateral trade negotiations rather than through unilateral action under Section 301 of the US Trade Act .

Representatives of Indian industry bodies also urged the USTR to reconsider the proposal. Poornima Shenoy of FICCI said additional tariffs would raise costs not only for Indian exporters but also for American manufacturers, importers, retailers and consumers. She added that many US companies rely on long-standing relationships with Indian suppliers because of their quality, reliability and compliance standards.

Suchita Sonalika of CII said India has a strong constitutional and statutory framework that prohibits forced labour and argued that Indian policies cannot be termed unreasonable or discriminatory under Section 301.

The USTR has proposed additional tariffs of 10-12.5 per cent on imports from 54 economies following investigations into forced labour and excess industrial capacity. India has maintained that there is insufficient evidence linking its major exports to forced-labour inputs and has called for a fair, economy-specific assessment.