India bars forced-labour imports after U.S. tariff threat

India's government announced on July 15, 2026 that it will bar imports of goods produced using forced labour, officials said. The step comes after the US Trade Representative proposed a 12.5% tariff on Indian goods as part of Section 301 probes into forced-labour practices, officials said.

Import ban on forced-labour goods

Officials described the measure as a compliance and enforcement action intended to prevent entry of products tied to coerced labour. The government did not publish a full list of affected product lines at the time of the announcement, officials said, but said customs and enforcement agencies will implement the restrictions immediately.

Exporters and importers face procedural and commercial disruption as customs checks and documentation demands increase. Companies that source inputs from regions or suppliers flagged in the USTR investigations will likely need to provide stronger due diligence and supply-chain certification to clear shipments, officials said.

Markets and trade partners will watch administrative guidance and any reciprocal steps closely. Watch for India to publish implementing rules and for the US Trade Representative to move toward a final determination by July 22, 2026, a window that could decide whether tariffs or additional restrictions are applied.