US plans extra 12.5% tariffs on India and 59 other countries for not enforcing forced labor ban | Today’s news
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 labor practices.
The 10% tariff would apply to imports from Canada, Mexico, the European Union, Taiwan and the United Kingdom, among others, according to a statement from the U.S. Trade Representative’s office. Products from other major economies, including China, India, Japan, South Korea, Brazil and Switzerland, would be subject to a higher tax of 12.5%.
“The failure of our most important trading partners to address imports of goods made with forced labor is unacceptable. This creates a dynamic where American workers are forced to compete globally on an unequal playing field,” said Ambassador Jamieson Greer.
“We will no longer tolerate this disparity. Some trading partners have taken the first steps to prevent the importation of forced labor goods, including through the USMCA and commitments in mutual trade agreements. But each of our trading partners must do more to ensure that trade does not perversely support and entrench forced labor around the world.”
The move comes as President Donald Trump seeks to rebuild a massive tariff wall struck down by the US Supreme Court. It will test the tolerance of economic partners who have largely refrained from retaliating, opting instead to negotiate deals with the US to lower import taxes and secure market access.
Written comments are due by July 6, and the Section 301 panel is expected to hold public hearings beginning July 7, according to the notice.
Trump’s broad trade agenda suffered a sharp blow in February when the Supreme Court struck down fees he had imposed under emergency powers. The 301 probe into forced labor practices initially targeted approximately 60 economies.
The Section 301 tariffs are seen as legally more reliable and flexible than other powers Trump has looked at, but they are also more time-consuming. As a temporary measure, the president also imposed a 10% global tax under Section 122 of the Trade Act, although those import taxes will expire in July. U.S. Trade Representative Jamieson Greer said the goal was to complete a series of trade investigations that would allow Trump to quickly enact new tariffs after the outgoing measures expire.
