US Tariff Proposal May Add Pressure On Indian Exporters

US Tariff On India 2026 Raises Export Concern

Indian exporters are watching a fresh US trade proposal closely after Washington suggested tariffs of up to 12.5% on imports from countries flagged over forced labour-related concerns. India and China are among 60 economies named in the proposal, making the move important for global trade and supply chains.

Why India Is In Focus

The proposal has been announced under Section 301 of the US Trade Act of 1974. This law allows the US to act against trade practices it considers unfair or harmful to American commerce. According to the US Trade Representative, some countries have not imposed strong restrictions on goods linked to forced labour, while others have failed to enforce existing rules properly.

What Tariff Could Apply

Under the plan, countries with weak or partial rules may face a 10% tariff. Countries that have not implemented forced labour import bans could face a higher tariff of 12.5%. India and China have been placed in the category where the US claims legal restrictions and enforcement are not strong enough.

What Happens Next

The proposal is still under review, so no final tariff has been imposed yet in 2026. However, the timing is important as India and the US are holding trade talks from June 2 to June 4, 2026. For Indian exporters, the final decision could affect costs, pricing, and future access to the US market.