US Imposes 10% Tariffs on Imports from India and Other Economies

The Trump administration on Thursday imposed new tariffs of 10 per cent and 12.5 per cent on imports from 60 economies, including India, saying the move aims to push trading partners to strengthen enforcement against goods produced using forced labour. India now qualifies for the lower 10% rate after recent policy changes. The new duties, imposed under Section 301 of the Trade Act of 1974, will take effect at 12.01 am EDT on Friday, replacing the temporary 10 per cent global tariff that expires at the same time. Goods already in transit will remain exempt until July 28, said the Office of the US Trade Representative (USTR),. The tariffs follow the US trade bodies' investigations which included public hearings, consultations with governments and thousands of public comments. "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," said US Trade Representative Jamieson Greer. The administration said the tariffs are aimed at countries that have failed to prohibit or effectively enforce restrictions on imports made with forced labour, arguing that weaker enforcement gives them an unfair trade advantage over the United States. Section 301 allows the US government to investigate foreign trade practices and impose tariffs or other trade penalties if they are found to unfairly burden or restrict US commerce. Under the final framework, countries that already have adequate forced labour import bans, have committed to introducing such measures, or have adopted partial restrictions will face a 10 per cent tariff. India is among the economies in this category after recent policy changes strengthened its approach to forced labour imports. A US official told ANI that India was slated for 12.5 per cent tariff, but based on productive discussions about labour practices, they got 10% tariff under Section 301 of the Trade Act of 1974. Other countries also in 10% bracket include UK, Canada, Mexico, Bangladesh, Pakistan, Malaysia, Indonesia, Cambodia, Sri Lanka, Jordan, Argentina, Ecuador, El Salvador, Guatemala, Honduras, and Trinidad and Tobago. Meanwhile, economies deemed to have inadequate safeguards will face a 12.5 per cent tariff, while certain products from the European Union, Japan, South Korea, Taiwan and Switzerland will attract tariffs of either 10 per cent or 12.5 per cent. The USTR has also launched a Section 301 investigation into 16 economies over allegations that they have overproduced goods, driving down global prices and hurting US manufacturers. The probe could lead to additional tariffs. Several products have been exempted from the new duties, including oil and gas, fertilisers, certain food items, goods already covered by national security tariffs on steel, aluminium, copper and automobiles, as well as products that qualify for duty-free treatment under the US-Mexico-Canada Agreement. The latest move marks the Trump administration's latest attempt to preserve its tariff agenda after the US Supreme Court struck down the President's earlier sweeping tariffs imposed under emergency powers.