Washington–India will face a lower 10% tariff under a new U.S. trade action targeting countries that fail to prohibit imports made with forced labor, after Washington determined that New Delhi had adopted an import ban during the investigation.
The Office of the U.S. Trade Representative said the Trump administration is imposing tariffs of between 10% and 12.5% on imports from 60 economies. The duties take effect July 24.
India is among 17 economies placed in the lower 10% tariff category, along with Bangladesh, Canada, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka and the United Kingdom.
The USTR said India qualified for the lower rate after adopting a prohibition on forced labor imports following the publication of the agency’s proposed action in June.
“President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains. The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” U.S. Trade Representative Jamieson Greer said.
“Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere. I am encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement,” Greer said.
The tariffs follow investigations launched March 12 into the forced labor import policies of 60 economies. The process included two rounds of public hearings, consultations with more than 45 governments, more than 2,100 public comments and testimony from over 100 witnesses.
The USTR concluded June 2 that the policies and practices of all 60 economies were unreasonable and burdened or restricted U.S. commerce, making them actionable under Section 301 of the Trade Act of 1974.
Cambodia, Guatemala, Honduras, Sri Lanka and Trinidad and Tobago also adopted forced labor import prohibitions after the investigations began. Jordan committed to similar measures through an Agreement on Reciprocal Trade.
Most of the other economies investigated, including China, Australia, Brazil, Saudi Arabia, the United Arab Emirates, Vietnam and South Africa, will face a 12.5% tariff.
The European Union, Japan, South Korea, Switzerland and Taiwan will be subject to a separate formula under which the new tariffs are adjusted based on existing Most-Favored-Nation duty rates.
The USTR also announced exemptions for certain raw materials, pharmaceuticals, semiconductor manufacturing equipment and products considered important to domestic supply chains. The agency said the exemptions cover goods for which tariffs could cause significant economic disruption or would not advance the policy’s objective.
Additional tariff-rate quotas will be developed for Bangladesh, Cambodia, Indonesia and Malaysia to encourage the use of U.S. textile and cotton materials.
According to the USTR, the action covers the 60 largest U.S. trading partners, which account for 99.4% of the country’s imports.
Section 301 gives the U.S. Trade Representative authority to investigate and respond to foreign government practices considered unreasonable, discriminatory or harmful to U.S. commerce. (Source: IANS)
