USTR Floats 12.5% Tariff on Indian Apparel Imports in Forced-Labour Probe

The US Trade Representative has proposed a 12.5% Section 301 tariff on Indian goods—above the 10% baseline for ~60 other partners—targeting cotton garments and inputs flagged for forced-labour risk. Public comment runs through early July before levies take effect; India says talks continue.

— Filed Thu, 4 Jun, 2026, 14:07 IST · Source Business of Fashion · Retail · Updated

USTR proposes 12.5% tariff on Indian imports (vs 10% for others) under a Section 301 forced-labour probe, flagging cotton garments and other inputs. India says it remains engaged; levies pending public comment before implementation.

Why this matters

USTR is escalating Section 301 enforcement beyond China, using forced-labour findings to justify above-baseline rates on a key apparel sourcing hub. Signals tougher US scrutiny of Indian cotton supply chains.

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Bloomberg wire originally; carried by: