US proposes 12.5 % tariff on India, China over forced labour import curbs
PTC News Desk: India and China are among 60 economies that could face new US tariffs after Washington proposed import duties of up to 12.5% on countries it believes have not done enough to curb the trade of goods linked to forced labour.
The proposal was announced by the Office of the United States Trade Representative under Section 301 of the US Trade Act of 1974, the same law used during US President Donald Trump's first term to impose tariffs on Chinese goods. Section 301 allows the US government to take trade action against countries it considers to be engaging in unfair practices that harm American economic interests.
The proposed tariffs are still under review and have not yet been approved. If implemented, they could affect a broad range of imports entering the United States and create fresh uncertainty in global trade markets.
The development comes as Indian and US officials are holding trade negotiations from June 2 to June 4 in an effort to reach a bilateral trade agreement.
According to the proposal, countries that have introduced full or partial bans on imports linked to forced labour could face an additional 10% tariff. Those that have not adopted such restrictions may face a higher tariff of 12.5%.
US Trade Representative Jamieson Greer said many major trading partners had failed to take adequate action against imports produced through forced labour, putting American workers at a disadvantage.
"The failure of our most important trading partners to address the importation of goods made with forced labor is unacceptable," Greer said in a statement.
- With inputs from agencies
