Overview
- The Office of the U.S. Trade Representative proposed additional ad‑valorem duties of roughly 10% to 12.5% on imports from about 60 economies after a June finding that those countries purportedly failed to bar goods made with forced labour.
- During three days of public hearings that began Tuesday, government delegations including India, Mexico and several Latin American states formally contested the probe’s methodology and urged exemptions or removal of their economies from the tariff list.
- India filed a detailed nine‑page submission on July 6 arguing the investigation lacks country‑ and product‑specific evidence and fails to show the causal link Section 301 requires for finding an 'unreasonable' practice.
- U.S. companies and industry groups warned the duties would raise costs and disrupt production of hard‑to‑source inputs, filing requests for narrow product exemptions; a coalition of 22 Democratic state attorneys general also objected and signaled likely litigation.
- Next steps: USTR will review written comments and testimony before a final determination, the existing temporary 10% tariff is set to lapse later this month, and legal and diplomatic challenges are expected if the agency moves to adopt the proposed duties.