India Opposes US Forced Labour Tariffs, Calls for Resolution Under BTA Negotiations

India has asked the United States to take up concerns related to forced labour under the ongoing India-US Bilateral Trade Agreement (BTA) negotiations instead of imposing unilateral trade measures, as per news reports.  

The position was presented during a public hearing before the Office of the US Trade Representative (USTR), where Commerce Ministry Joint Secretary Brij Mohan Mishra said trade issues should be addressed through bilateral discussions rather than Section 301 investigations. 

USTR Proposal Under Review 

The USTR launched two Section 301 investigations on March 11 and 12, 2026, covering 60 economies over concerns related to forced labour and excess industrial capacity.  

On June 3, the agency proposed additional tariffs of 10% to 12.5% on imports from 54 economies, saying they had failed to prevent goods produced with forced labour from entering global supply chains. 

India, in its submission, said the proposal does not establish that the absence of a forced labour import ban causes market distortions or creates an unfair advantage for Indian exports. It also stated that there is no sector-wise evidence linking India's major exports to the US with forced labour. 

India Highlights Policy Gaps 

India also questioned the structure of the proposed tariff framework. It pointed out that around 1,600 products that cannot be produced or cultivated in the United States have been kept outside the scope of the proposed measures.  

According to India, these exemptions weaken the stated objective of preventing forced labour in global supply chains. 

The government also referred to lower tariff rates available for textile products made using US-origin cotton and related inputs. It said this requirement influences sourcing decisions without fully addressing concerns around forced labour. 

India further argued that the USTR had issued findings across 60 economies without conducting a country-specific assessment of individual legal and regulatory systems. 

Industry Cites Cost Impact 

Industry bodies also opposed the proposed tariffs during the hearing. Representatives of FICCI said additional duties would raise costs for Indian exporters as well as US manufacturers, importers, retailers and consumers.  

They added that established supply chains built on compliance standards would become more expensive without helping identify goods produced through forced labour. 

The Confederation of Indian Industry (CII) said India's constitutional and statutory framework prohibits forced labour and does not qualify as an "unreasonable" or "discriminatory" practice under Section 301 of the Trade Act. 

Read More: India's EV Adoption Rises; Odisha, Delhi, Tamil Nadu Record Strong Growth! 

Conclusion 

The proposed US tariff measures have drawn objections from both the Indian government and industry representatives. India has maintained that the ongoing BTA talks provide the appropriate platform to discuss trade-related concerns. 

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