US proposes new tariffs on India over forced labour concerns
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The United States is considering new tariffs on more than 60 trading partners, including India, over what it says are failures to effectively prevent imports made with forced labour.
Under a proposal released by the Office of the United States Trade Representative (USTR), India could face an additional 12.5 per cent tariff, alongside countries such as China, Japan, South Korea, Brazil, and Switzerland.
The proposed measures are part of investigations launched under Section 301 of the Trade Act of 1974. The USTR said 54 economies had failed to impose and effectively enforce prohibitions on imports produced with forced labour.
Countries named in this category include India, China, Bangladesh, Vietnam, Japan, Israel, Qatar, Russia, Saudi Arabia, Singapore, the United Arab Emirates, and the United Kingdom. Six other economies, including Canada, Mexico, Pakistan, Indonesia, Ecuador, and the European Union, were found not to have effectively enforced such restrictions.
USTR chief Jamieson Greer said the failure of major trading partners to address forced labour imports created unfair competition for American workers.
The tariffs are not set to take effect immediately and will undergo a public consultation process. Written comments can be submitted until July 6, after which hearings will be held before any final decision is made.
The proposal follows legal setbacks for President Donald Trump's broader tariff agenda. If implemented, the new measures could provide an alternative route for imposing trade duties.
Several products would be exempt from the tariffs, including beef, coffee, and certain fruits and nuts. Goods from Canada and Mexico that comply with the North American Free Trade Agreement would also be excluded, along with some textiles and apparel products.
The development comes as a US trade delegation led by chief negotiator Brendan Lynch is in New Delhi for talks aimed at finalising an interim trade agreement with India.
India's negotiating team is being led by Darpan Jain, Additional Secretary in the Department of Commerce. Discussions are focused on market access, non-tariff barriers, customs procedures, investment promotion, and economic security cooperation.
The talks build on a framework agreed upon by India and the United States in February under a proposed Bilateral Trade Agreement. According to the framework, the US agreed to reduce tariffs on Indian goods to 18 per cent and remove certain duties linked to India's imports of Russian oil, offering relief after months of trade tensions between the two countries.