The United States may impose additional import duties on products from dozens of countries after trade authorities proposed new tariffs tied to labour standards and supply chain practices.

The proposal, put forward by the Office of the United States Trade Representative (USTR), could affect imports from approximately 60 economies, including India, China, Japan, South Korea, the United Kingdom and several countries across Asia and other regions.

Although the proposal has not yet been approved, it signals a possible expansion of Washington’s efforts to incorporate labour-related concerns into its trade policies.

What Is Being Proposed?

Under the draft plan, the USTR is considering extra tariffs of up to 12.5 percent on imports from countries that it believes have not taken sufficient action against goods associated with forced labour.

The proposal creates two categories. Economies that have introduced complete or partial restrictions on imports linked to forced labour could face a 10 percent tariff. Countries that have not established such prohibitions may be subject to a higher rate of 12.5 percent.

US Trade Representative Jamieson Greer said weak enforcement by some trading partners creates disadvantages for American businesses and workers that operate under stricter labour regulations.

Why Are India and China Included?

According to the USTR's findings, India and China are among the countries identified as lacking both adequate legal restrictions and effective enforcement mechanisms concerning imports associated with forced labour.

The agency stated that these shortcomings may allow products produced under questionable labour conditions to enter international markets at lower costs, potentially affecting fair competition and trade practices.

China’s inclusion comes despite existing US measures targeting labour concerns in specific regions and industries, while India was also cited for not meeting the standards outlined in the investigation.

Understanding Section 301

The proposed action falls under Section 301 of the US Trade Act of 1974, a legal provision that authorises the US government to investigate and respond to foreign trade practices deemed harmful to American commerce.

This provision became widely known during President Donald Trump's first administration when it was used to justify tariffs on a large volume of Chinese imports.

The current investigations began in March 2026 and examined countries responsible for nearly all goods imported into the United States. Authorities assessed whether governments had implemented and enforced measures to block products connected to forced labour.

Which Countries Could Be Affected?

In addition to India and China, the list includes major trading partners such as the European Union, Japan, South Korea, Canada, Mexico, the United Kingdom, Bangladesh, Vietnam, Thailand and several Gulf nations.

The USTR noted that some economies, including Canada, Mexico, Pakistan, Indonesia, Ecuador and the European Union, already have legal restrictions in place but were found to be insufficient in terms of enforcement.

The proposal remains under review, and no final decision has been announced. US authorities are expected to conduct additional consultations before determining whether the tariffs will be implemented.

Potential Impact on Global Trade

The proposal also outlines a separate framework for textile and apparel imports, allowing limited quantities of certain products to enter the US market under lower tariff rates. Further details regarding eligibility are yet to be released.

The move reflects Washington's growing focus on labour practices, ethical sourcing and supply chain transparency in international trade policy.

The US has already adopted measures such as the Uyghur Forced Labor Prevention Act, which places restrictions on products connected to China's Xinjiang region unless importers can demonstrate that forced labour was not involved.

If the proposed tariffs eventually take effect, exporters across Asia and other regions could face new challenges while adapting to stricter labour-related trade requirements in the US market.