The United States has proposed a fresh round of tariffs on imports from more than 60 countries, including India, Bangladesh, China, Vietnam, Japan and the United Kingdom, citing concerns over the importation of goods linked to forced labour. The move, announced by the Office of the United States Trade Representative (USTR), could reshape trade relations with several major exporting nations and add new pressure on global supply chains already grappling with economic uncertainty.
The proposed measures, unveiled under Section 301 of the US Trade Act of 1974, would impose an additional 12.5 percent tariff on imports from 54 economies that the USTR says have failed to establish or effectively enforce prohibitions on goods produced wholly or partially with forced labour. India and Bangladesh are among the countries included in this group.
A lower tariff rate of 10 percent has been proposed for six economies: Pakistan, the European Union, Canada, Mexico, Ecuador and Indonesia, which the USTR said have demonstrated greater commitment to addressing forced labour concerns through existing import restrictions or formal trade arrangements with the United States.
The announcement comes at a sensitive time for India, which is currently engaged in negotiations with Washington over a broader trade agreement. The proposed tariffs were released while US and Indian officials were holding trade discussions aimed at resolving outstanding issues in a framework agreement announced earlier this year.
India’s Ministry of Commerce and Industry moved quickly to clarify that the measures are not yet final. In a statement, the ministry said India remains actively engaged with US authorities and emphasized that the proposal is still undergoing a public consultation process.
“The proposed tariffs are not yet final,” the ministry said, noting that stakeholders have until July 6, 2026, to submit written comments and that public hearings are scheduled for July 7. The USTR will review feedback before deciding whether to implement the measures.
If adopted, the tariffs could take effect as early as July, potentially replacing temporary trade measures currently scheduled to expire later this summer. Trade analysts say the proposal marks a significant escalation in the Trump administration’s use of Section 301 investigations as a trade enforcement tool.
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The latest action follows investigations launched by the USTR in March into whether foreign governments were doing enough to prevent forced labour-linked products from entering their markets and eventually reaching the United States through global supply chains. According to the USTR, inadequate enforcement of forced labour restrictions creates unfair competition for American workers and businesses.
US Trade Representative Jamieson Greer said countries must do more to eliminate products linked to forced labour from international commerce.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable,” Greer said in announcing the proposal.
For Bangladesh, the development raises concerns for its export-oriented apparel sector, which relies heavily on the US market. The country recently secured a reduction in separate US tariff measures following negotiations with Washington, but the new proposal could create fresh challenges for garment exporters if implemented.
The USTR has also proposed a separate textile and apparel mechanism that would allow a specified volume of imports from certain countries to enter the US at reduced Section 301 tariff rates. However, details regarding eligibility criteria, quota allocations and participating countries have yet to be finalized.
Trade experts note that Section 301 carries greater legal weight than some of the reciprocal tariff measures previously introduced by the Trump administration. Earlier tariff programs faced legal challenges and suffered setbacks in US courts, prompting the administration to rely increasingly on Section 301 investigations as a foundation for trade actions.
Under Section 301, the US government has broad authority to impose tariffs, suspend trade concessions, negotiate binding agreements or take other retaliatory measures against trading partners deemed to be engaging in unfair practices. Analysts say courts have historically granted significant discretion to the executive branch when actions follow the procedural requirements established by law.
India faces additional uncertainty because it has been named not only in the forced labour investigation but also in a separate Section 301 inquiry examining excess manufacturing capacity. That investigation could potentially lead to further trade measures beyond the proposed 12.5 percent tariff.
The proposed tariffs underscore a broader shift in US trade policy, with Washington increasingly linking market access to labour standards and supply chain transparency. For exporting nations across Asia, including India and Bangladesh, the outcome of the consultation process will be closely watched as governments and industries assess the potential impact on competitiveness in the world’s largest consumer market.
With public hearings scheduled for July 7 and final decisions expected later in the month, businesses on both sides of the Pacific are preparing for what could become one of the most consequential trade policy developments of 2026.
