USTR proposes 12.5% Section 301 tariff on Indian goods, above 10% set for Bangladesh, Vietnam
USTR's forced-labour findings under Section 301 propose 12.5% penalty tariffs on most Indian exports, eclipsing the 10% applied to Bangladesh, Vietnam and Indonesia. The move pressures Delhi to finalise a BTA locking in an 18% rate and leaves Indian textile and apparel exporters at a competitive disadvantage versus Asian peers ahead of the July 24, 2026 deadline.
What happened
USTR proposes 12.5% Section 301 tariffs on most Indian goods over forced-labour findings, higher than 10% for Bangladesh, Vietnam, Indonesia. Pressures India to
Key facts
- 12.5%
- 10%
- 18%
- Section 301
- July 6
- July 7
- July 24 2026
Why this matters
Watch for distressed Indian apparel suppliers and consolidation plays across South Asia as the tariff gap pressures Delhi toward a BTA settlement at an 18% locked rate.