US slaps 10% tariff on goods imported from India over forced labour concerns

Washington: The US has imposed a 10 per cent tariff on goods imported from India and 16 other countries as part of a wider action against products made using forced labour. On June 3, when the US had proposed tariffs under Section 301 of the Trade Act, India was bracketed among countries attracting 12.5 per cent levies, but Washington took note of the amendment New Delhi made to its foreign trade policy prohibiting the import of goods produced using forced labour.

On July 14, India amended its policy to introduce that prohibition. The government amended the foreign trade policy to prohibit the import of goods produced using forced labour, amid a US investigation into forced labour practices in 60 countries, including India.

“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.

US Trade Representative Jamieson Greer announced the new tariffs on 60 countries on Thursday, a day before the expiration of 10 per cent additional levies on all countries. 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.

The forced labour tariffs will not apply to raw materials that would lead to unavailability of domestic supply; products that would cause economy-wide disruptions and on products that cannot be produced or grown in sufficient quantities in the US.