Trump Tariffs: America has proposed major trade action against 60 countries and economies including India. The US Trade Representative (USTR) says that these countries have not implemented effective restrictions on the import of goods allegedly made with forced labor.

The American agency has proposed imposing additional duties, calling it harmful for American trade and industry. This development has come to light at a time when continuous talks are going on between India and America to finalize the bilateral trade agreement.

Proposal for action against 60 economies

The Office of the US Trade Representative (USTR) said in a statement issued on Tuesday that after an investigation under Section 301 of the US Trade Act of 1974, it has been concluded that the policies and practices of 60 economies are adversely affecting US trade. According to USTR, US businesses are being harmed by these countries’ failure to effectively prevent imports of products made with forced labor. Therefore, these cases have been considered actionable under US trade law.

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India also included in the list

India is also included among the 54 countries and economies which USTR has placed in this category. Apart from India, countries like Australia, Bahrain, Bangladesh, China, Japan, Kuwait, Saudi Arabia, Singapore, Britain and United Arab Emirates are also included in this list. US Trade Representative Jamieson Greer said that the failure of America’s major trading partners to stop the import of products made with forced labor is unacceptable. According to him, due to this, American workers have to face unequal competition in the global market.

proposal to impose additional fees

Based on the findings of the investigation, USTR has proposed to impose additional duties on products coming from the concerned countries. According to the agency, an additional 10 percent duty may be imposed on countries that have implemented a ban on products made from forced labor or have made a commitment to do so. There is a proposal to impose additional duty up to 12.5 percent on other countries. Apart from this, a separate arrangement has also been proposed for some imports related to textile and apparel sector.

The investigation started in March

USTR said that the investigation into this matter was started on March 12. Statements of approximately 60 witnesses were taken during the investigation and approximately 500 comments were received during the public consultation process. After considering all these aspects, the agency has prepared its conclusions.

USTR gave reasons for action

The US agency says that the lack of effective restrictions on the import of products made from forced labor weakens efforts to end labor exploitation at the global level. According to USTR, this gives an unfair advantage to low-cost producers, impairs market competition, and harms companies that do not use forced labor. This also increases the possibility of bypassing the restrictions already in place.

The proposal came amid India-US trade talks

This proposal has come at a time when India and America are working towards finalizing the first phase of the bilateral trade agreement. In the last few months, several rounds of talks have taken place between officials of New Delhi and Washington. Issues like market access, tariffs, digital trade and agriculture have been prominently included in these talks.

Tension increased after Trump’s tariff policy

This step of USTR has come amid trade tensions arising after the reciprocal tariff policy of US President Donald Trump. Earlier this year, India was also among the countries which the US had warned of imposing higher tariffs. However, later some proposed steps were temporarily stopped for talks with trading partner countries. India has consistently maintained that it is working towards a balanced and win-win trade agreement while protecting its sensitive domestic sectors.

America is still India’s biggest trading partner

Despite trade differences emerging from time to time, America remains India’s largest trading partner. Bilateral trade in goods between the two countries has crossed the level of more than 120 billion dollars in recent years. Both India and America have reiterated their commitment to further strengthen economic relations.

Comments sought till July 6

USTR has invited written comments on the proposed measures by July 6. After this, a public hearing will be held on July 7. The final decision will be taken after hearing and considering the suggestions received. The agency has clarified that charges will not be automatically imposed based on its findings. But if the US administration decides to move forward, additional tariffs, import quotas or other trade restrictions could be imposed under Section 301.