US Trade Body Threatens India with Tariffs Amid Ongoing Trade Deal Negotiations
Why US trade body has threatened India with fresh tariffs amid trade deal talks

Image: Hindustan Times
The United States Trade Representative (USTR) has proposed new tariffs on India and other countries due to inadequate measures against imports made with forced labor. This action comes as India and the US are negotiating a Bilateral Trade Agreement (BTA). The proposed tariffs could reach 12.5% for India, affecting various imports.
- 01The USTR's investigation found that 54 economies, including India, fail to effectively prohibit imports made with forced labor.
- 02Proposed tariffs could be 10% for countries with some enforcement and 12.5% for others, impacting a wide range of products.
- 03The USTR's actions are not based on allegations of forced labor in Indian exports but focus on India's import-control system.
- 04The consultation phase for the proposed tariffs includes public hearings scheduled for July 7, with final decisions expected later this summer.
- 05This tariff threat follows previous tensions over reciprocal tariffs initiated by the Trump administration.
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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.
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If implemented, the tariffs could significantly affect Indian exporters by increasing costs and complicating trade relations.
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