Trump's 'Forced Labour' Tariff Charge Against India Is Really About Something Else

The US is using Section 301 of the Trade Act of 1974 to impose tariffs on goods from 60 countries, including India, based on its import control regime and supply chain traceability. The proposed measure targets India's ability to detect tainted inputs before they reach global markets, arguing that it does not do enough to prevent forced labor in its exports. While the US aims to eliminate forced labor, this approach risks becoming a trade filter rather than a solution, potentially harming honest exporters and undermining supply chain diversification efforts. The US is also investigating structural excess capacity in India's manufacturing sector, which could have significant implications for India's economic growth.