The United States is set to announce its final action on Section 301 investigations into the handling of goods produced with forced labour by 60 trading partners, including India, the US Trade Representative (USTR) said on Wednesday. The decision is expected to be released on Thursday, ahead of the expiry of the current 10% additional tariffs imposed on imports from various countries. US Trade Representative Jamieson Greer informed the Senate Finance Committee that the investigations examined whether the United States' top 60 trading partners had adopted and effectively enforced import restrictions on goods produced through forced labour.

The review forms part of Washington’s broader efforts to strengthen global trade standards and curb the movement of products linked to forced labour. “As soon as tomorrow, USTR will release its final responsive action on its Section 301 investigation of our top 60 trading partners' failure to address international trade in forced goods at their borders,” Greer told lawmakers during the committee hearing. The investigations were conducted under Section 301 of the US Trade Act, a provision that allows the US government to examine and respond to foreign trade practices considered unfair or harmful to American commerce.

The move could have implications for several countries, including India, depending on the findings and the final measures announced by the USTR. Last month, the USTR proposed additional tariffs of 10% and 12.5% on trading partners based on the strength of their existing measures to prevent the import of goods allegedly produced using forced labour. Countries with weaker enforcement mechanisms could face higher trade penalties under the proposed framework.

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The final action is being closely watched by governments and exporters worldwide, as any additional tariffs could affect trade flows and increase costs for businesses exporting goods to the United States. India, one of the countries included in the review, has been engaged in ongoing trade discussions with Washington on a range of market access and tariff-related issues. The announcement also comes amid broader efforts by the United States to tighten supply chain regulations and ensure compliance with international labour standards. Washington has increasingly used trade measures to encourage stronger enforcement against forced labour practices in global supply chains.

While the exact details of the final action are yet to be made public, businesses and policymakers are awaiting clarity on whether the proposed tariffs will be implemented as announced or modified following consultations. The outcome could influence trade relations between the United States and several major economies. The USTR's decision is expected to provide greater certainty on the next phase of US trade policy concerning forced labour enforcement, with potential implications for exporters, manufacturers and global supply chains in the months ahead.

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