The United States has imposed a 10% tariff on goods purchased from India and 16 other countries, citing inadequate measures to prevent the use of forced labour in production.
The announcement came on Thursday, a day before the expiry of the 10% temporary tariffs imposed by the US on all of its trade partners.
United States Trade Representative Jamieson Greer said that the new tariffs on imports from 60 countries were imposed under a provision of the country’s Trade Act that affects “unfair trade practices” that affect US commerce.
The tariffs were imposed at US President Donald Trump’s direction on economies that had failed to prohibit or effectively prevent the import of goods produced using forced labour, Greer added.
In June, the US Trade Representative had proposed additional tariffs of 10% or 12.5% on imports from 60 economies, including India, citing allegations of forced labour.
The 10% tariff bracket applies to countries that have committed to “adopting and effectively enforcing” a ban on imports of goods produced using forced labour, while countries that have not adopted such a prohibition will face a 12.5% tariff, a statement by the US Trade Representative read.
On June 14, India had amended its foreign trade policy to prohibit the import of goods produced using forced labour.
The United States had launched the investigations into 60 economies on March 12, after the US Supreme Court struck down global tariffs imposed by Trump, ruling that he had exceeded his authority.
India has denied the allegations under the forced labour clause and has asked Washington to terminate the investigations, saying the matters should be addressed within the framework of ongoing trade negotiations rather than through unilateral measures.
Written by Anamika Pathak. Edited by Neerad Pandharipande.
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