US Proposes New 12.5% Tariff On Indian Exports Amid Trade Dispute

The United States Trade Representative (USTR) has proposed additional import duties on 54 countries, including India, over concerns related to the importation of goods allegedly produced through forced labour. The move follows investigations into trading partners that, according to the USTR, have not adequately prohibited or enforced restrictions on such imports.

Under the proposal, India and 53 other economies could face an additional 12.5% tariff on exports to the United States. Countries named in the category include China, Japan, Brazil, Australia, the United Kingdom and Saudi Arabia. Separately, Canada, the European Union, Mexico, Indonesia, Ecuador and Pakistan were identified as jurisdictions that have existing prohibitions but are accused of not enforcing them effectively.

Explaining the proposal, U.S. Trade Representative Jamieson Greer said, “The failure of our most important trading partners to address the importation of goods made with forced labour is unacceptable. This creates a dynamic where American workers are forced to compete globally on an uneven playing field.”

India has rejected the allegations and urged Washington to address the issue through ongoing bilateral trade discussions rather than unilateral investigations. USTR has invited public comments on the proposal until July 6 and scheduled hearings for July 7 before taking a final decision.