US plans new 12.5% tariff on India amid trade talks

THE US HAS proposed an additional 12.5% tariff on imports from India and 43 other countries, on the grounds their exports contain inputs produced by forced labour. The move is seen as an attempt by the US administration to retain leverage in ongoing trade negotiations.

- MUKESH JAGOTA

The proposed duties, announced after an investigation into the policies of 60 countries that together account for more than 99% of US imports, will replace the existing 10% tariff imposed under Section 122 of the Trade Act. Those duties are due to expire on July 24. For 16 other countries covered by the investigation, the US has proposed an additional tariff of 10%.