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The United States Trade Representative (USTR) has concluded a fresh Section 301 investigation covering 60 countries, including India. It said that India has failed to impose and effectively enforce a prohibition on the importation of goods produced with forced labour, a finding that comes even as a US trade delegation is in India from June 1 to June 4 for discussions on a bilateral trade agreement between the two countries.
Further, the United States announced the proposal of a fresh slew of additional tariffs of 10 per cent and an additional duty of 12.5 per cent on key global economies, claiming that investigations have revealed goods being imported from 60 countries are produced via forced labour.
In its report, the USTR examined the practices of 60 economies accounting for more than 99 per cent of US imports.
The report concluded that India’s approach to imports linked to forced labour is actionable under Section 301 of the US Trade Act of 1974.
“In sections III.A.7 and III.B.7, USTR found that India has failed to impose and effectively enforce a forced labor import prohibition,” the report said.
It further stated: “In section IV, we found that the failure to impose and effectively enforce a forced labor import prohibition is unreasonable. In section V, we found that the failure to impose and effectively enforce a forced labor import prohibition burdens or restricts U.S. commerce.”
“For nearly a century, the United States has prohibited the importation of goods made with forced labor. It is time for our trading partners to follow suit. Today, Ambassador Greer determined that the acts, policies, and practices of 60 economies related to the failure to prohibit the importation of goods produced with forced labor is unreasonable and burdens or restricts U.S. commerce. Learn more about submitting public comments regarding the proposed responsive action,” the US Trade Representative office said.
Based on those findings, the report concluded that “the acts, policies, and practices of India related to the failure to impose and effectively enforce a forced labor import prohibition are unreasonable and burden or restrict U.S. commerce.”
India was among 54 economies that, according to the USTR, that have failed to impose a legal prohibition on the importation of goods produced wholly or in part with forced labour. The report said six other economies–Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan–have such prohibitions in place but have failed to enforce them effectively.
The investigation was initiated by the USTR in March 2026 and covered economies from which 99.4 per cent of US imports originate. The report argues that the absence of forced labour import bans distorts global trade, creates unfair competitive advantages, and undermines efforts to eliminate forced labour from international supply chains.
According to the report, “the failure of each of the investigated economies to impose and effectively enforce a forced labor import prohibition is unreasonable” because it undermines the global objective of eliminating forced labour, distorts market conditions, and contributes to the circumvention of existing import restrictions.
The report also said that such failures “burden or restrict U.S. commerce by subjecting U.S. producers to unfair competition from forced labor goods in both export markets and the U.S. market.”
The findings assume significance as India and the United States are currently engaged in negotiations aimed at deepening bilateral trade and resolving market access issues. A US trade delegation is visiting India from June 1 to June 4 for discussions related to the proposed bilateral trade agreement and other trade issues, including tariffs imposed by the United States.
Meanwhile, India clarified that it remains engaged with the United States on the proposed tariff measures under the Section 301 proceedings and is simultaneously working towards finalising a bilateral trade framework agreement with Washington, the Ministry of Commerce and Industry said on Wednesday.
According to an official statement, the Ministry said that the United States Trade Representative (USTR) has concluded investigations involving 60 economies, including India, regarding measures adopted by these economies to prevent imports of goods.
Following the investigations, the USTR has proposed imposing additional tariffs on imports from the 60 economies under Section 301 of the US Trade Act of 1974. However, products already covered under Section 232 tariffs, along with certain other categories, have been excluded from the proposed measures.
The government noted that the proposed tariff measures are not yet final. Stakeholders have been invited to submit requests to participate in public hearings by June 22, while written comments may be filed until July 6.
Public hearings on the proposed measures are scheduled for July 7, after which the USTR will consider the submissions and testimony before taking a final decision.
“India remains engaged with the US on the matter as part of the Section 301 proceedings,” the Ministry of Commerce and Industry said in the statement.
The Ministry added that India is also engaged in parallel discussions with the US on the finalisation of a framework agreement, as announced on February 2, 2026, and in line with the joint statement issued by the two countries on February 7.
