US Proposes Fresh Tariffs on 60 Countries Including India
Washington DC: The United States on Tuesday (local time) proposed a new round of tariffs, including additional tariffs of 10 percent and 12.5 percent on imports from key global economies, claiming that investigations had found goods from 60 countries were produced using forced labor.
The details were revealed in a statement by the Office of the US Trade Representative (USTR).
USTR identified 54 economies that it said failed to impose and effectively enforce bans on imports of goods produced using forced labor. The list includes Australia, China, India, Israel, Japan, Qatar, Russia, Saudi Arabia, Singapore, South Korea, Sri Lanka, Switzerland, Taiwan, Thailand, Turkey, UAE and the United Kingdom.
Under the proposal, economies that already have some form of forced labor import ban or have committed to implementing such measures through trade agreements could face an additional 10 percent tariff. Other economies may be subject to an additional tax of 12.5 percent.
The proposed action also includes a textile mechanism that would allow certain quantities of apparel and textile imports from certain economies to enter the United States at a reduced Section 301 tariff rate.
USTR said the action falls under Section 301 of the Trade Act of 1974, which allows the United States to take action against foreign acts, policies or practices deemed unreasonable or burdensome to American commerce.
As part of the move, USTR invited public comments on the proposed tariffs.
“For economies that impose an import ban on forced labor, have committed to establish and enforce such a ban through a Reciprocal Trade Agreement, or apply a partial regime with the effect of blocking imports of certain forced labor goods, the U.S. Trade Representative recommends an additional duty rate of 10 percent. For all other economies, the U.S. Trade Representative recommends an additional duty rate of 12.5 percent.”
USTR also flagged six economies, including the European Union, Pakistan and Canada, for allegedly failing to effectively enforce bans on imports of goods produced with forced labor.
“The failure of our most important trading partners to address imports of goods produced with forced labor is unacceptable. This creates a dynamic in which American workers are forced to compete globally in an unequal competitive environment,” Jamieson Greer said.
The proposed tariffs come as Indian negotiators prepare for talks with the visiting US delegation aimed at finalizing a bilateral trade agreement (BTA).
Sources told ANI that securing preferential market access and avoiding US Section 301 investigations will be key priorities for India during the negotiations.
The talks, scheduled to be held from June 1 to June 4, are chaired by US Chief Negotiator Brendan Lynch and India Additional Secretary Darpan Jain.
According to the Ministry of Commerce, the talks will focus on finalizing the details of the interim trade agreement and advancing negotiations on market access, non-tariff barriers, customs and trade facilitation, investment promotion and economic security cooperation.
