United States Trade Representative (USTR) Proposes 12.5% Tariffs on India and 59 Other Economies

Key facts

• The United States Trade Representative (USTR) has proposed additional tariffs of up to 12.5 per cent on imports from 60 economies, including India, China, and the European Union.
• The proposal follows 60 separate investigations initiated in March 2026 under Section 301 of the US Trade Act of 1974, covering economies accounting for 99.4 per cent of US imports.
• USTR found that 54 economies, including India, China, Japan, and South Korea, failed to impose legal prohibitions and effectively enforce restrictions on imports linked to forced labour.
• The proposed tariff structure includes a separate mechanism for textile and apparel imports to allow limited volumes of certain products to enter the United States at lower rates.
• Sectors under scrutiny for forced labour concerns include textiles, solar equipment, mining, and electronics, alongside existing enforcement of the Uyghur Forced Labor Prevention Act.