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USTR Forced‑Labour Tariff Plan Draws Formal Objections From India and Australia

Formal submissions and weeklong hearings have produced detailed evidence disputes and split industry views that could turn the pending tariff decision into diplomatic fights and court challenges.

Overview

  • The Office of the U.S. Trade Representative proposed roughly 10–12.5% additional tariffs on imports from scores of economies after two Section 301 probes, and held public hearings during July 7–9 to gather testimony and written comments.
  • India told the USTR that the proposal lacks country‑ and product‑specific evidence, noted a U.S. list exempting about 1,600 items, and said the U.S. textiles mechanism improperly favors use of U.S. cotton.
  • Australia lodged a formal objection arguing there is no credible evidentiary basis for findings against it, asked for carve‑outs for critical imports, and said the proposed 12.5% rate would be unfair compared with similar partners.
  • U.S. industry groups split sharply: textile manufacturers urged strong duties to protect domestic producers while broad retail and trade coalitions warned the blanket tariffs would raise costs for importers and consumers and fail to target forced labour effectively.
  • The USTR is reviewing testimony and submissions before a likely final determination later in July, and adoption would almost certainly prompt diplomatic protests and legal challenges that will hinge on the agency’s administrative record.