USTR Floats 12.5% Tariff on Indian Imports Over Forced-Labour Gaps

US Trade Representative proposes minimum 10% tariffs on 60 partners and a steeper 12.5% rate on India under Section 301, citing forced-labour enforcement failures across 34 goods including cotton-for-garments. India says it remains engaged; existing apparel and textile quotas may soften the blow ahead of a July 6-7 deadline.

— Filed Fri, 5 Jun, 2026, 06:53 IST · Source Business of Fashion · Retail · Updated

USTR proposes 12.5% tariff on Indian imports (vs 10% baseline for others) citing forced-labour enforcement gaps, flagging cotton-for-garments among 34 goods. India's commerce ministry says it remains engaged; apparel/textile quotas may offer partial relief.

Why this matters

Follows USTR's earlier 12.5% tariff floated on Indian apparel imports in a forced-labour probe, signaling escalating US scrutiny of India's supply-chain enforcement ahead of the July 6-7 deadline.

Retail-company signals steady at 1,844 over the last 90 days.