Blitz Bureau
NEW DELHI: The US has launched a fresh investigation into 60 countries, including India, to look into whether these countries have failed to ban the import of goods made using forced labour, the office of the US Trade Representative announced late on March 12.
The new investigation is under Section 301(b) of the Trade Act of 1974. This is the same section under which the USTR launched a different investigation on March 11 on India and 15 other countries to examine whether they are using excess manufacturing capacity to export to the US to the detriment of American industry.
While the first investigation was on 16 countries, the second one’s scope covers 60 of the US’ largest trading partners.
According to the US Trade Representative Jamieson Greer, the investigations will determine whether foreign governments have taken “sufficient steps” to prohibit the import of goods produced with forced labour and how the “failure to eradicate” these abhorrent practices impacts US workers and businesses.
Tariffs likely
If the results of the investigation warrant it, the US can use this to levy tariffs on the countries it has found have failed to take these sufficient steps to ban the import of goods made using forced labour. Greer said, “For too long, American workers and firms have been forced to compete against foreign producers who may have an artificial cost advantage gained from the scourge of forced labour.” The USTR on March 11 said it has requested consultations with the governments of these economies in connection with these investigations.
The USTR will hold hearings in connection with the investigations on April 28, 2026.
China, the European Union, Japan, South Korea and Mexico are among the other economies that could face new tariffs by this summer under the investigation of unfair trade practices.
