India and South Korea Challenge Proposed US Forced Labor Tariffs

The Government of India and the government of South Korea have formally urged the United States Trade Representative (USTR) to withdraw proposed 12.5% tariffs on their imports. The duties follow a Section 301 investigation launched in March 2026 into forced labor-related trade practices across 60 economies, which resulted in proposed tariffs for 54 nations in June. The move comes as the Donald Trump administration seeks replacements for reciprocal tariffs struck down by the U.S. Supreme Court in February and as a 10% global tariff approaches its July 24 expiration date.

During public hearings in Washington on July 8, Indian officials and industry bodies argued that the USTR's findings lack a factual basis and fail to prove that Indian laws cause measurable harm to U.S. industry. Representatives from the Ministry of Commerce and Industry and the Agricultural and Processed Food Products Export Development Authority challenged the USTR's methodology, specifically contesting claims regarding rice imports. India further alleged that the USTR's decision to exempt 1,600 products that cannot be produced domestically undermines the policy's rationale.

South Korea described the proposed tariffs as unwarranted and disproportionate, arguing that the USTR's conclusions lack sufficient analysis of domestic legal frameworks. Both nations have urged the U.S. to resolve these trade disputes through bilateral negotiations and dialogue rather than unilateral measures. Industry bodies like FICCI and CII warned that the tariffs would disrupt supply chains and increase costs for American consumers and manufacturers.