Washington: The United States has proposed a fresh round of import duties targeting dozens of trading partners, with India among the countries likely to face a higher tariff rate under a new trade enforcement initiative linked to labour standards.
According to the proposal announced by the Office of the United States Trade Representative (USTR), countries deemed to have inadequate measures against the import of goods produced through forced labour could be subjected to additional duties. India is among a group of nations that may face a proposed tariff of 12.5 per cent on certain exports entering the American market.
The proposed action stems from an investigation conducted under Section 301 of US trade law. American officials argued that insufficient enforcement of restrictions on products linked to forced labour creates unfair competition for domestic industries and workers.
Alongside India, several major economies, including China, Vietnam, Taiwan, Japan, South Korea, Brazil and Switzerland, are included in the category facing the higher tariff proposal. Another group comprising Canada, Mexico, Pakistan, Indonesia, Ecuador and the European Union could face a lower 10 per cent duty under the same framework.
US Trade Representative Jamieson Greer said Washington expects its trading partners to take stronger steps to prevent products associated with forced labour from entering global supply chains. He maintained that the proposed measures are intended to promote fair trade practices and protect American workers.
The announcement comes as the administration of President Donald Trump explores alternative trade tools after previous tariff measures encountered legal challenges in US courts. Officials view the Section 301 route as a more durable mechanism for imposing trade penalties if necessary.
The proposal is not yet final. Stakeholders and foreign governments have been invited to submit comments before early July, after which public hearings will be conducted. Any final decision could have implications for global trade flows and ongoing negotiations between the United States and several major economic partners.
For India, the development adds another dimension to bilateral trade discussions that have been underway in recent months over market access, tariffs and supply-chain cooperation.
