USTR Floats 12.5% Tariff on Indian Apparel Imports in Forced-Labour Probe
The US Trade Representative has proposed a 12.5% Section 301 tariff on Indian goods—above the 10% baseline for ~60 other partners—targeting cotton garments and inputs flagged for forced-labour risk. Public comment runs through early July before levies take effect; India says talks continue.
What happened
US Trade Representative · USTR proposes 12.5% tariff on Indian imports (vs 10% for others) under a Section 301 forced-labour probe, flagging cotton garments and
Key facts
- 10%
- 12.5%
- 60 trading partners
- 34 goods
- Section 301
- July 6
- July 7
Why this matters
Forced-labour-linked tariff signals durable sourcing diversification tailwind—screen Bangladesh, Vietnam, and Central American vertically integrated apparel targets while Indian asset valuations soften.
Also reported by
Bloomberg wire originally; carried by:
- Business of Fashion · Retail — Same time