Trump’s Decision Over Forced Labor Allegations

The United States, under Donald Trump, has announced a significant decision to impose new tariffs on imports from nearly 60 partner countries, including India, citing concerns over inadequate enforcement of bans on goods produced through forced labor. The new tariffs will range between 10 percent and 12.5 percent. With the expiry of the temporary 10 percent global tariffs, the US has enforced stricter duties under Section 301 of the Trade Act of 1974.

India, however, received partial relief as the initially proposed 12.5 percent tariff was reduced to 10 percent due to its efforts in strengthening anti-forced labor regulations. Additionally, exemptions have been granted for imports such as crude oil, natural gas, fertilizers, and goods covered under the US Mexico Canada trade agreement, offering some cushion to global trade flows.