Donald Trump New Tariffs On India: US President Donald Trump can give a big blow to India on tariffs. Yes… Donald Trump is once again preparing to explode tariff bombs on the world. America can impose huge new tariff on India (US New Tariff On India). America is preparing to impose a tariff of at least 10 percent. The tariff rate can also reach 12.5%. His proposal comes after an investigation into forced labor practices. This proposal has been brought amid talks of India-US trade deal. This may affect the trade agreement between the two countries.
In fact, the Office of the US Trade Representative (USTR) has proposed trade action against 60 countries including India and China. USTR says these countries have not implemented effective restrictions on imports of goods allegedly made with forced labor. Therefore, America is incurring losses due to this. Therefore, tariffs should be imposed against these countries.
The Office of the US Trade Representative said in a statement 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 the USTR, US businesses are being harmed by these countries’ failure to effectively prevent imports of products made with forced labor. Therefore, action should be taken against these countries.
Proposal of 12.5 percent tariff on many countries including India and China
According to media reports, the names of India and China are included in this list. Trump can impose a tariff of 12.5 percent against both the countries. Apart from these two countries, a tariff of 12.5 percent can also be imposed on goods coming from countries like Japan, South Korea, Brazil and Switzerland. Whereas a tariff of 10 percent may be applicable on imports from other countries including Canada, Mexico, European Union, Taiwan and Britain.
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. The lack of effective restrictions on the import of products made with forced labor weakens efforts to end labor exploitation globally. This gives unfair advantage to products produced at lower costs. Market competition is affected and companies that do not use forced labor are harmed.
America is still India’s biggest trading partner
Despite many trade differences, America remains India’s largest trading partner. Bilateral trade in goods between the two countries has crossed the level of more than $120 billion in recent years. Both India and America have reiterated their commitment to further strengthen economic relations.
