USTR proposes 12.5% Section 301 tariff on Indian goods, above 10% set for Bangladesh, Vietnam
USTR's forced-labour findings under Section 301 propose 12.5% penalty tariffs on most Indian exports, eclipsing the 10% applied to Bangladesh, Vietnam and Indonesia. The move pressures Delhi to finalise a BTA locking in an 18% rate and leaves Indian textile and apparel exporters at a competitive disadvantage versus Asian peers ahead of the July 24, 2026 deadline.
USTR proposes 12.5% Section 301 tariffs on most Indian goods over forced-labour findings, higher than 10% for Bangladesh, Vietnam, Indonesia. Pressures India to finalize BTA locking 18% rate; textile/apparel exporters face competitive disadvantage versus Asian peers.
Why this matters
USTR's proposed 12.5% tariff on India breaks from the 10% baseline applied to other Asian sourcing hubs, raising sourcing costs for retailers reliant on Indian textiles and apparel and accelerating BTA negotiations.
Retail-company signals steady at 1,852 over the last 90 days.