India Faces Lower 10% US Tariff After Adopting Forced Labor Import Ban
Washington–India will face a lower 10% tariff under a new U.S. trade enforcement action after the Trump administration concluded that New Delhi had adopted a ban on imports produced with forced labor during the investigation.
The Office of the U.S. Trade Representative said Thursday that tariffs would be imposed on imports from 60 economies accused of failing to prohibit or effectively enforce restrictions on goods made with forced labor.
The duties, which take effect July 24, range from 10% to 12.5%, depending on the strength of each country’s forced labor import rules and enforcement.
India is among 17 economies subject to the lower 10% rate. Other countries in the category include Bangladesh, Canada, Indonesia, Malaysia, Mexico, Pakistan, Sri Lanka and the United Kingdom.
According to the USTR, India was placed in the lower-tariff group after adopting a forced labor import prohibition following the publication of the agency’s proposed action in June.
“President Trump recognises that decades of moral suasion have not eradicated forced labour from global supply chains. The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same,” U.S. Trade Representative Jamieson Greer said.
“Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice to improve the welfare of workers everywhere. I am encouraged by the trading partners who have moved quickly to adopt forced labour import prohibitions, and look forward to ensuring their effective enforcement,” Greer added.
The tariffs follow investigations launched March 12 into the policies of 60 economies. The process included two rounds of public hearings, consultations with more than 45 governments, more than 2,100 public comments and testimony from over 100 witnesses.
The USTR determined June 2 that the practices of all 60 economies were “unreasonable” and burdened or restricted U.S. commerce, making them subject to action under Section 301 of the Trade Act of 1974.
Cambodia, Guatemala, Honduras, Sri Lanka and Trinidad and Tobago also adopted forced labor import prohibitions after the investigations began. Jordan committed to similar measures through an Agreement on Reciprocal Trade, according to a Federal Register notice.
Most of the other economies investigated, including China, Australia, Brazil, Saudi Arabia, the United Arab Emirates, Vietnam and South Africa, will face a 12.5% tariff.
The European Union, Japan, South Korea, Switzerland and Taiwan will be subject to a separate formula that calculates the new tariffs after accounting for existing Most-Favored-Nation duty rates.
The USTR also announced exemptions for certain raw materials, pharmaceuticals, semiconductor manufacturing equipment and products considered important to U.S. supply chains. The agency said tariffs on those goods could cause significant economic disruption or fail to advance the policy’s objectives.
Additional tariff-rate quotas are expected to be developed for Bangladesh, Cambodia, Indonesia and Malaysia to encourage imports made with U.S. textile and cotton materials.
The action covers the top 60 U.S. trading partners, which account for 99.4% of American imports, according to a USTR fact sheet.
Section 301 gives the U.S. trade representative authority to investigate and respond to foreign government practices considered unreasonable, discriminatory or harmful to U.S. commerce. (Source: IANS)
