The United States has proposed imposing new import tariffs on several of its major trading partners, including India. The American administration claims that many countries have not taken sufficient steps to prevent the import of goods produced through alleged ‘forced labour.’ Based on this, a proposal has emerged to impose an additional 12.5 percent tariff on India.
The Office of the United States Trade Representative (USTR) stated in a release on Tuesday that, during its investigation, 54 economies were identified that have not implemented effective restrictions on the import of goods made through forced labour. This list includes countries such as India, China, Vietnam, Taiwan, and the UK. Apart from India, there are proposals to impose a 12.5 percent tariff on countries like China, Japan, South Korea, Brazil, and Switzerland.
Which Countries Face 10% Tariffs ?
The US investigation has considered Canada, Mexico, the European Union (EU), Indonesia, Ecuador, and Pakistan as economies that have established rules but have failed to implement them effectively. It has been proposed to impose a 10 percent tariff on products from these countries.
What Did US Officials Say ?
The top US trade official, Jamieson Greer, stated that the policies of many trading partners are forcing American workers to face unfair competition in the global market. He mentioned that while some countries have certainly taken initial steps, more stringent action is now required so that international trade does not encourage forced labour.
Which Products Will Get Exemptions?
Some important exemptions have been provided in the proposed tariffs. These include:
Beef
Coffee
Certain fruits and nuts
Some specific textile and apparel products
Certain goods arriving under free trade agreements from Canada and Mexico
The Office of the United States Trade Representative has invited written consultations and objections regarding this proposal until July 6. Following this, public hearings are expected to begin on July 7.
After many of President Donald Trump’s tariff decisions were overturned by the US Supreme Court earlier this year, the administration has launched a new trade investigation campaign. The objective is to implement such duties that are legally stronger and can remain effective for a longer duration.
If these tariffs are implemented, the pressure of additional costs could increase on Indian industries exporting to the United States. However, a final decision has not been reached yet, and changes in the rules are possible following public consultations and hearings.
