US Tariff: Why is America going to impose extra tax on 60 countries including India? This is the big reason

The US Trade Representative (USTR) has made a big proposal to impose additional tariff of 10 to 12.5 percent on goods coming from 60 countries of the world including India. This step has been taken following an investigation report under Section 301 of USTR, which states that these countries have failed to stop the use and trade of goods made with forced labor in their countries. This news has come at a time when an American delegation is on a three-day visit to India for trade talks between the two countries. Recently, US Secretary of State Marco Rubio also visited India.

America’s stance on additional tariffs

US Trade Representative Jameson Greer says that even his most important trading partners are not taking the issue of forced labor seriously. This exposes American workers to unfair and unequal competition in the global marketplace, which will no longer be tolerated. It is noteworthy that America imports about 99.40 percent of its total imports from these 60 countries.

Tariffs are divided into two categories

Additional 10 percent tariff: Will be imposed on economies that have taken certain legal steps against forced labor, made commitments in trade agreements or implemented partial arrangements. India is included in this category.

12.5 percent additional tariff: This will be imposed on six countries that have failed to fully implement this legal framework, which include Canada, Mexico, Indonesia, Pakistan, Ecuador and the European Union countries.

Apart from this, a special arrangement is proposed for the textile sector, under which a certain quantity of clothing and textile products can be allowed to enter the US at lower tariffs. However, products included in Annex ‘A’ of the Federal Register notice will be exempted from this scope.

Trump’s tariff policy and court setback

This entire incident is believed to be President Donald Trump’s attempt to revive the comprehensive tariff system, which was declared illegal by the US Supreme Court in February this year. Earlier, on April 2, 2025, President Trump had announced the imposition of Reciprocal Tariff on 100 countries including India, the simple rule of which was ‘tit for tat’. That means, if any country imposes heavy tax on American goods, then America will also impose the same tax on its goods in return. After the setback from the Supreme Court, this new report is now being seen as an alternative path.

Talk of relief and India’s stance

The matter of relief is that these tariffs are not being implemented immediately. America has talked about public opinion and review process on this. The last date for filing written objections is 6th July, after which the public hearing on this will start from 7th July.

The Ministry of Commerce and Industry of India is keeping a close watch on this entire matter. The Indian Commerce Ministry has issued an official statement saying that they are in constant touch with the US administration regarding the entire process of Section 301 and new proposals, so that Indian interests can be protected.

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