India Pushes Back Against Proposed 12.5% US Import Tariffs

New Delhi, Jul 8 (KNN) India has urged the United States to withdraw its proposal to impose an additional 12.5 percent tariff on Indian imports under a Section 301 investigation into alleged forced labour-related trade practices, arguing that the proposed action lacks sufficient evidence and a country-specific assessment.

India Challenges Proposed US Tariffs

In a submission to the Office of the United States Trade Representative (USTR) dated July 6, India said the investigation does not establish how its laws or policies constitute an ‘unreasonable’ trade practice under Section 301 or demonstrate any measurable harm to US industry.

The USTR launched two separate Section 301 investigations in March covering 60 economies over concerns related to forced labour and industrial overcapacity. Based on the forced labour investigation, it proposed additional tariffs in June on imports from 54 economies.

Under the proposal, India is among 48 economies that could face an additional 12.5 percent tariff, while countries including Canada, the European Union, Indonesia, Mexico, Ecuador and Pakistan would be subject to an additional 10 percent duty.

The proposal remains under consultation and has not yet been implemented.

India Questions Basis of Investigation

India argued that the USTR adopted a broad approach instead of evaluating each country's legal framework and enforcement mechanisms individually, reported Times Of India.

It maintained that the findings do not establish that India's regulatory policies distort trade or provide exporters with an unfair competitive advantage.

The submission stated that the investigation does not provide evidence linking India's export sectors to forced labour or demonstrate that the absence of a ban on imports of goods produced with forced labour disadvantages US businesses.

India further argued that the absence of such an import prohibition, by itself, cannot be treated as an ‘unreasonable’ trade practice under Section 301 without meeting the statutory evidentiary requirements.

It also said the USTR had not shown that India's policies substantially distort market conditions or undermine the competitiveness of companies adhering to labour standards.

India Seeks Consultations with USTR

India has requested the United States to reconsider the proposed tariffs and expressed its willingness to engage with the USTR through consultations to address any specific concerns.

The USTR is currently conducting public hearings and reviewing written submissions before taking a final decision on the proposed measures.

(KNN Bureau)