U.S. Proposes Tariffs on Indian Imports
The U.S. proposed a 12.5% tariff on Indian imports over forced labor concerns, complicating ongoing trade talks.
Lauren Collins ·
U.S. Proposes Tariffs on Indian Imports
The United States has proposed an additional 12.5% tariff on imports from India, citing India's failure to curb imports made with forced labor. This proposal, issued by the U.S. Trade Representative's (USTR) office on June 3, occurred during ongoing trade talks between Indian and U.S. officials in New Delhi.
The USTR's 92-page report stated that India has not imposed or effectively enforced a forced labor import prohibition, deeming its policies unreasonable and a burden on U.S. commerce. This action places India among 60 economies identified by the USTR as lacking sufficient measures against forced labor imports. Six other nations, including Canada and the European Union, face a lower 10% tariff for ineffective enforcement of existing prohibitions.
This proposed tariff follows a Section 301 unfair trade practices investigation. The USTR report also identified India as an intermediary in cotton supply chains linked to Chinese forced-labor inputs. Indian officials are expected to address this issue during the bilateral trade negotiations, seeking tariff relief as part of a broader trade agreement.