Washington: The United States on Thursday imposed a 10% tariff on imports from India and 16 other countries over concerns related to the use of forced labour in the production of certain goods. The new duties were announced by the Office of the US Trade Representative (USTR) under Section 301 of the Trade Act as part of a broader tariff package covering imports from 60 trading partners, a day before the expiry of the existing 10% additional levies on all countries.
What did the US say?
US Trade Representative Jamieson Greer announced the new tariffs on 60 countries under Section 301 of the Trade Act.
While announcing the tariffs, US Trade Representative Jamieson Greer said that, “Today’s action will begin to correct what is both a human rights abuse and 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.”
What about other countries?
India has been placed in the lower tariff slab of 10 per cent, while some other countries will be subject to additional duties of up to 12.5 per cent.
Countries that do not have laws barring goods produced using forced labour, such as China, the United Kingdom and Japan, will face tariffs of 12.5 per cent.
Out of the 60 countries that are facing tariffs, the 10 per cent rate applies to 17 countries, including India, Canada, the UK, Bangladesh, and Pakistan. The other 43 will have to bear 12.5 per cent.
What did Donald Trump say?
Following an order from US President Donald Trump, a review of 60 trading partner countries was conducted. Initially, it was believed that India could face an additional 12.5 per cent tariff, but after positive discussions between the two countries regarding labor standards, India was placed in the 10 per cent slab.
“As a result of these actions, the Trade Representative has advised me that the goods of these economies should be tariffed at the 10 per cent rate to further encourage these economies to effectively enforce such prohibitions,” US President Donald Trump said in a memorandum on the issue on Thursday.
Which countries are under the 10 per cent tariff slab?
Besides India, Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the UK are also in the 10 per cent additional tariff group. Several other countries will face additional tariffs of up to 12.5 per cent.
