US proposes extra 12.5% tariffs on Indian imports: What is the current levy on Indian goods?
The U.S. proposed 12.5% additional tariffs on India and 59 other countries for failing to enforce prohibitions on forced labor-produced imports, targeting economies like Canada, Mexico, and China. The levies, set to replace struck-down Trump-era measures, will not take effect immediately and follow ongoing Section 301 investigations involving India.
The United States has proposed new tariffs of 12.5% on imports from India and 59 other trading partners, including China, Japan, and South Korea, for not enforcing bans on goods produced with forced labor. The proposal, announced by the Office of the U.S. Trade Representative, targets six economies—Canada, Ecuador, the European Union, Indonesia, Mexico, and Pakistan—for failing to meet the criteria, while others face a 10% duty if they impose partial restrictions. The tariffs aim to address a Supreme Court ruling that struck down broader levies imposed by former President Donald Trump in February. As a temporary measure, Trump had applied a 10% global tariff under Section 122, which expires in July. The new proposal follows ongoing Section 301 investigations, where India is engaged in discussions with the U.S. over concerns related to forced labor and excess industrial capacity. India’s Commerce and Industry Ministry confirmed engagement with the U.S. on the matter, noting that talks on a trade framework agreement announced in February are still ongoing. The proposed tariffs would apply to all products from investigated economies unless they fully prohibit forced labor imports or commit to such bans through reciprocal trade agreements. The U.S. Trade Representative’s office stated that the additional duties would not be implemented immediately, allowing time for further negotiations. The move reflects broader efforts to pressure trading partners into stricter labor standards, following the expiration of Trump’s interim tariffs and the legal reversal of his earlier global levies.
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