US May Impose Additional Tariffs on Goods Produced Using Forced Labor

04-Jun-2026 05:54 PM

New Delhi. While a US delegation has been engaged in talks with Indian officials in New Delhi over the past two or three days to finalize an interim agreement for bilateral free trade, the US, on the other hand, appears to be contemplating a new maneuver.

It is considering the possibility of imposing an additional import duty of 12.5 percent on Indian products whose manufacturing involves the use of forced labor. According to informed sources, such an additional customs duty could also be applied to products from several other countries across the globe.

The US trade delegation has proposed the imposition of a 12 percent "forced labor customs duty" and has invited public opinion, comments, and suggestions regarding this proposal until July 6, 2026. It appears that the US is now seeking new pretexts to secure customs duty concessions on its own products from various nations, including India.

There is also a proposal to apply this duty to products from 59 other countries. An import duty of 18 percent is already applicable to Indian products entering the US; the imposition of this additional customs duty would further exacerbate the difficulties faced by exporters.