It placed India among 54 economies that lack a forced-labour import prohibition and therefore face the higher proposed duty.
Six other nations, from Canada, Ecuador and the European Union to Indonesia, Mexico and Pakistan, have such prohibitions but face a lower tariff of 10 percent for failing to enforce them effectively.
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Ajay Srivastava, founder of Global Trade Research Initiative, said the finding could be challenged, as the USTR investigation was not about forced labour in Indian exports but whether India blocked imports tied to forced labour elsewhere.
“The proposed tariffs are viewed as part of broader US pressure tactics, and India should treat Section 301 actions and the India–US bilateral trade agreement negotiations separately,” he said.
An Indian government source had told Reuters that New Delhi planned to raise the issue of the Section 301 investigation with Lynch’s team and seek tariff relief as part of the broader two-way trade deal.
The USTR report also identified India as an intermediary in cotton supply chains linked to Chinese forced-labour inputs.
