• US Trade Representative proposes tariffs of 10% to 12.5% on 60 countries due to forced labor concerns.
• India among countries facing potential higher tariffs, despite ongoing trade negotiations.
• Proposed tariffs part of a strategy to rebuild Trump’s import tax framework after legal setbacks.
• Public comments on the proposed tariffs are being accepted until July 6, with hearings set for July 7.
• Global trading partners, including China and the EU, reject the allegations and criticize the US move.

The United States has proposed new tariffs of 10% to 12.5% on imports from 60 countries, including major trading partners like India, China, and the European Union, amid concerns about forced labor in global supply chains. The Office of the United States Trade Representative (USTR) stated that these countries "failed to impose and effectively enforce" a prohibition against goods produced with forced labor. The proposed tariffs were announced following a series of investigations conducted under Section 301 of the US Trade Act of 1974, which aims to address unfair trade practices, according to Channel News Asia and CBS News.

The announced tariffs include a 12.5% rate for countries like India, China, and Japan, deemed to have inadequate measures against forced labor, while 10% tariffs apply to others such as Canada and the EU, which have shown some commitment to restricting imports linked to forced labor. The USTR highlighted that the failure of trading partners to address this issue creates an unbalanced competitive environment for American workers, as stated by India Times and BBC.

As discussions unfold, India, which remains actively engaged in trade negotiations with the US, faces the added pressure of these proposed tariffs. The USTR's findings indicated that India, among other economies, has not effectively enforced prohibitions against forced labor in its supply chains. This situation complicates ongoing efforts to finalize a bilateral trade agreement, as mentioned by India Times and Los Angeles Times.

The proposed tariffs come as the Trump administration seeks to rebuild its tariff system after recent legal setbacks regarding previous duties imposed under emergency powers. USTR Jamieson Greer emphasized that the new tariffs are essential to level the playing field for American workers, reflecting a broader strategy to utilize Section 301 as a key tool in trade policy. This change follows decisions by the Supreme Court that curtailed a range of tariffs previously enacted, asserts India Times and Al Jazeera.

The response to the proposed tariffs has been mixed, with countries like China and members of the EU vehemently rejecting the allegations tied to forced labor, with accusations of the US using these claims as a pretext for political manipulation. As discussions and public comments on the tariffs remain open until early July, the economic implications are being closely monitored by global trading partners, as reported by South China Morning Post and India Times.