The United States Trade Representative (USTR) has indicated that India could face new tariffs as part of ongoing trade negotiations, particularly due to India's failure to adequately block imports made using forced labor. The USTR's findings, announced on June 2, identify 54 economies, including India, that do not effectively enforce prohibitions against such imports. The proposed tariffs could be set at 12.5% for countries like India that lack effective enforcement mechanisms, while those with partial compliance might see a 10% tariff. This move is particularly significant as it comes during negotiations for a Bilateral Trade Agreement (BTA) between the US and India. The USTR's actions do not allege that Indian exports are produced using forced labor but rather focus on the country's import controls. The consultation process for these tariffs includes public hearings and written comments, with a final decision expected later this summer. This development adds another layer of complexity to the already tense trade relationship between the two nations, especially following previous tariff disputes initiated by the Trump administration.