New Delhi: Even as a United States trade delegation is here to advance negotiations on an interim trade agreement, the Donald Trump administration has proposed fresh tariffs on India and several other countries over alleged failures to prevent imports linked to forced labour.
The proposed tariffs, announced by the Office of the United States Trade Representative (USTR), include an additional 12.5 per cent duty on imports from India, alongside countries such as China, Japan, South Korea, Brazil and Switzerland. According to a USTR filing released on Wednesday, the move targets trading partners that Washington believes have not adequately enforced restrictions on goods allegedly produced using forced labour.
The proposed duties are currently under review and will not take effect immediately. Public comments have been invited until July 6, after which hearings will be conducted before any final decision is made.
The development comes as the Trump administration looks for alternative legal pathways to revive parts of its tariff policy after several measures were challenged in US courts earlier this year.
US Trade Representative Jamieson Greer reportedly said countries that fail to stop imports linked to forced labour create unfair competition for American workers.
“The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unlevel playing field,” Greer was quoted as saying by CNBC..
“We will no longer tolerate this disparity. Some trading partners have taken initial steps to prevent the importation of forced labor goods, including through USMCA and commitments in Agreements on Reciprocal Trade. However, each of our trading partners must do more to ensure that trade does not perversely encourage and entrench forced labor globally.”
India is among 54 economies identified by the USTR as allegedly failing to effectively implement and enforce restrictions on such imports. Other countries named include Bangladesh, Vietnam, Taiwan, Israel, Saudi Arabia, Singapore, the United Arab Emirates and the United Kingdom.
However, the proposed tariff structure includes exemptions for certain products such as beef, coffee, fruits and nuts. Goods covered under the North American trade pact involving Canada and Mexico, along with select textile and apparel products, are also expected to remain exempt.
The proposed tariffs come at a sensitive time for India-US trade ties, with a US delegation led by chief negotiator Brendan Lynch currently in New Delhi for discussions aimed at finalising an interim trade agreement between the two countries.
India’s negotiating team is being led by Commerce Ministry Additional Secretary Darpan Jain. The talks are focused on issues including market access, customs facilitation, non-tariff barriers, investment promotion and broader economic security cooperation under the proposed Bilateral Trade Agreement (BTA).
The trade negotiations follow a framework agreed upon by both countries in February. Under the proposed first phase of the BTA, the US had reportedly agreed to lower tariffs on certain Indian goods and reconsider some duties linked to India’s purchase of Russian oil, offering relief after months of trade-related tensions.
While the fresh tariff proposal may complicate negotiations, both sides continue to push for an interim arrangement aimed at strengthening economic ties.
