India Urges US to Reconsider Proposed 12.5% Tariff Linked to 'Forced Labour' Probe Under USTR's Section 301

India has formally asked the United States to reconsider a proposed 12.5% tariff being examined under Section 301 of the US Trade Act, according to The Times of India, after the US Trade Representative opened a probe linked to allegations of forced labour practices in certain Indian supply chains.

Section 301 is a powerful US trade law instrument that allows Washington to impose steep tariffs on countries it finds guilty of unfair trade practices — and its invocation against India represents a significant escalation in bilateral trade friction at a time when both countries are negotiating a broader trade deal. India's formal objection signals that New Delhi views the proposed tariff as unjustified and potentially damaging to its export sector.

The sectors most at risk from such a tariff would likely include labour-intensive industries such as textiles, garments, and manufacturing — areas where India has a large export presence in the US market and where millions of workers are employed. Any imposition of a 12.5% duty would make Indian goods measurably less competitive against rivals such as Vietnam and Bangladesh in the American market.

The development comes at a sensitive moment, with India and the US in active discussions over a bilateral trade agreement. New Delhi will be hoping its objection prompts Washington to either drop or substantially modify the tariff proposal before it can be formally enacted, preserving the broader momentum of the trade relationship.