Trump imposed 10% additional tariff on India, America took strict action on many countries including Pakistan and Bangladesh

New Delhi: Taking a tough stance against products involving forced labour, America has decided to impose an additional 10 percent tariff on some goods imported from India. This decision has been taken after investigation by the US Trade Representative Office (USTR) and the new rates have been implemented from Friday. America says that this additional duty is being imposed on countries which have not taken sufficient steps to effectively ban products made from forced labour.

Why was additional tariff imposed?

According to USTR, this action has been taken on the basis of Section 301 investigation. America believes that it is necessary to eliminate products made with forced labor from the global supply chain. For this purpose, additional duty has been imposed on those countries where the need was felt to further strengthen labor standards.

India was kept in 10% slab

Initially it was believed that additional tariff up to 12.5 percent could be imposed on India. However, after positive talks between India and America regarding labor standards, India was kept in the lower slab of 10 percent. This reduced the burden of possible higher duty on India.

Pakistan and Bangladesh also within the scope

Apart from India, many countries including Pakistan, Bangladesh, Sri Lanka, Malaysia, Indonesia, Canada, Mexico, Argentina have also been included in the group with 10 percent additional tariff. At the same time, additional duty up to 12.5 percent will be imposed on some other countries.

India increased surveillance

According to sources, in view of possible additional tariffs, India had already prepared guidelines for identification and monitoring of products involving forced labour. Its objective is to ensure adherence to international labor standards and minimize the impact on exports.

Which products will not be affected?

America has clarified that products like steel and aluminium, on which separate sectoral tariffs are already applicable, will not be affected by this new decision. Apart from this, some energy products, fertilizers and trade under USMCA agreement have also been kept out of this additional duty.