USTR probe action creates uncertainty for India, others

India faces renewed trade uncertainty as the US Trade Representative moves forward with a probe into forced labor, potentially replacing existing tariffs. Hearings are underway, with a proposed 12.5% tariff impacting over 50 nations, including India. This development could shift trade deal negotiations, with the US possibly using structural overcapacity issues as leverage for bilateral agreements. Exporters might find relief if the broader forced labor tariff replaces the current one.