India is facing a potential 12.5% tariff on imports proposed by the US Trade Representative (USTR), which is part of a broader investigation into forced labor practices among trading partners. This proposal comes after the US Supreme Court invalidated previous tariffs under Donald Trump's administration. The USTR's findings indicated that India, along with 53 other countries, failed to enforce prohibitions against imports linked to forced labor, thus justifying the higher tariff rate. The USTR has opened a public comment period until July 6, with hearings scheduled to begin shortly after. If enacted, the new tariff would replace the current 10% temporary tariff that was introduced following the Supreme Court's decision. This development could complicate ongoing negotiations for a bilateral trade agreement between India and the United States, which currently has a robust trade relationship valued at over $120 billion. Exemptions may be considered for certain agricultural goods and products covered under regional trade agreements.