Rapid Fire
US Investigates India and 59 Others Over ‘Forced Labour’
- 17 Mar 2026
- 3 min read
The US has launched a trade investigation against India and 59 other economies under Section 301 of the Trade Act, 1974 to examine whether their supply chains include goods produced using forced labour.
- The probe aims to address unfair trade advantages arising from lower production costs, which the US Trade Representative (USTR) argues harm American industries and workers.
- The US views forced labour in global supply chains as both a human rights violation and a national security issue.
- Tariff Revival Strategy: The investigation is seen as a way to legally justify reimposing tariffs after the US Supreme Court struck down earlier reciprocal tariffs in 2026.
- Global Scope: The probe targets 60 economies, including India, China, the European Union, UK, Japan, Australia, Canada, Russia, Bangladesh, and Sri Lanka.
- The investigation will examine products made using imported intermediate goods such as cotton and yarn in textiles, critical minerals used in solar panels and electronics, and palm fruit used in biofuels.
- Impact on India: Although India prohibits forced labour under the Bonded Labour System (Abolition) Act, 1976, its export industries may face scrutiny because many rely on raw materials and components imported from China.
- Key sectors such as solar panels (using Chinese polysilicon), electronics (dependent on Chinese sub-assemblies), and textiles and garments (using imported fabrics) could be particularly vulnerable.
- Additionally, India is also facing a separate US investigation on “excess manufacturing capacity” in sectors like solar modules, petrochemicals, and steel.
- If the US finds violations, it may impose heavy tariffs or trade restrictions on imports from affected countries.
- Exporters may need to adopt strict traceability mechanisms to prove that products are free from forced labour.
| Read more: India–US Trade Deal 2026 |
