Trump tariff threat: India’s strong stand on US Section 301 probe that proposes 12.5% duties

AI Summary

The US is advancing its Section 301 investigation into India's trade practices, proposing a 12.5% tariff amid concerns over forced labor. The proposed duty could replace an existing 10% tariff set to expire on July 24, escalating trade tensions between the two countries.

According to policymakers and trade experts, the pace of the investigation suggests that the US may replace the existing 10% tariff, which remains in force until July 24, with the proposed forced labour-related tariff. The United States Trade Representative (USTR) has advanced one of its two investigations into America's trading partners, even as the July 24 deadline for the temporary 10% additional tariff draws closer.