New Delhi: US President Donald Trump has announced a fresh 10% tariff on imports from India under Section 301 of the U.S. Trade Act, as part of a broader trade action targeting around 60 economies over concerns related to labor practices.
The latest move comes as the earlier blanket 10% tariff, imposed by the Office of the U.S. Trade Representative (USTR) following a U.S.
Supreme Court ruling on reciprocal tariffs, expires. Ahead of its expiry, the USTR issued a new tariff framework, placing countries in either a 10% or 12.5% tariff category.
India has been placed in the lower 10% tariff bracket, alongside countries including the United Kingdom, Bangladesh, Indonesia, Mexico, and Pakistan.
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According to the USTR, the tariffs are linked to concerns over forced labor practices. India was initially expected to face a 12.5% tariff, but secured the lower 10% rate after discussions with U.S. authorities and policy changes aimed at addressing labor-related concerns.
The development follows amendments made by India to its forced labor policy in June, a move that is believed to have contributed to the reduced tariff rate.
The fresh tariff, however, comes at a sensitive time for India-U.S. trade ties.
New Delhi has consistently opposed the trade levies imposed by Washington, and the latest action could complicate ongoing negotiations for a bilateral trade agreement, the first phase of which is yet to be concluded.
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While the reduced tariff rate may be seen as a relatively favorable outcome compared to the higher 12.5% bracket, the new levy underscores continuing trade frictions between the two countries as negotiations over a broader trade pact remain unresolved.
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