The US is proposing new tariffs of at least 10% on imports from most major trading partners, including India, following a US investigation into alleged forced-labour practices. India is likely to face a 12.5% tariff.
“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,” said Ambassador Jamieson Greer.
“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 faces 12.5% tariff —How does it compare with other countries?
On Tuesday, the USTR said that 54 of the economies “failed to impose and effectively enforce a forced labor import prohibition.” And, these countries are likely to face 12.5% tariff
This group includes China, Vietnam, India, Taiwan and the United Kingdom.
Six other economies — Canada, Ecuador, the EU, Indonesia, Mexico and Pakistan — were deemed not to have effectively enforced such prohibitions. These will be slapped with 10% tariff
Accordingly, the 10% rate would apply to imports from Canada, Mexico, the European Union, Taiwan and Pakistan, among other places, according to a statement from the Office of the US Trade Representative. Products from other major economies, including China, India, Japan, South Korea, Brazil and Switzerland, would be subject to a higher 12.5% levy.
The move comes as President Donald Trump seeks to rebuild the sweeping tariff wall struck down by the US Supreme Court. It will test the tolerance of economic partners, who have largely restrained from retaliating, opting instead to negotiate deals with the US to lower import taxes and ensure market access.
Written comments are due to be submitted by July 6, and a Section 301 panel is expected to convene public hearings beginning on July 7, according to the notice.
Trump’s broad trade agenda suffered a sharp blow in February when the Supreme Court struck down levies he imposed using emergency powers. The 301 probe into forced-labor practices initially targeted around 60 economies.
Section 301 tariffs are seen as more legally sound and flexible than other powers Trump has eyed, but also more time-consuming. As a stopgap measure, the president also implemented a 10% global levy under Section 122 of the trade law, though those import taxes expire in July. US Trade Representative Jamieson Greer has said the goal was to complete a series of trade investigations to allow Trump to quickly enact new tariffs after the outgoing measures expire.
