US Proposes 12.5% Tariff on India Over Forced Labour Concerns
US targets India with 12.5% forced labour tariff under Trade Act
Image: Khaleej Times
The United States Trade Representative has proposed a 12.5% tariff on India due to its failure to prohibit imports produced with forced labor. This move is part of a broader initiative affecting nearly 60 countries, aimed at ensuring fair competition for American workers.
- 01The proposed tariff on India is part of a broader initiative affecting nearly 60 countries, including China and Japan.
- 02USTR Jamieson Greer emphasized the need for trading partners to address forced labor in their supply chains.
- 03India has rejected the allegations and requested the US to resolve these issues through ongoing trade negotiations.
- 04The proposed action falls under Section 301 of the US Trade Act of 1974, similar to tariffs imposed on China during the Trump administration.
- 05A public hearing regarding the new tariffs is scheduled for July 7, with written comments due by July 6.
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The United States Trade Representative (USTR) has proposed a 12.5% tariff on India due to its failure to impose a legal prohibition on the importation of goods produced with forced labor. USTR Jamieson Greer stated that this lack of enforcement creates an unlevel playing field for American workers. The proposal also includes similar tariffs for nearly 60 other countries, including China, Japan, and South Korea, while Pakistan and the European Union face a 10% tariff. Greer highlighted the unacceptability of trading partners not addressing forced labor issues effectively. India has denied the allegations and urged the US to resolve these concerns within the framework of ongoing bilateral trade negotiations. The proposed action is based on Section 301 of the US Trade Act of 1974, a law previously used to impose tariffs on China. A public hearing is set for July 7, with written comments due by July 6.
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The proposed tariffs could lead to increased prices for goods imported from India, affecting American consumers and businesses reliant on these imports.
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