US-India Trade Deal: On Tuesday, the US proposed new tariffs of at least 10% on imports from its major trading partners, including India, following an investigation into alleged forced-labour practices, under which India is likely to face a 12.5% tariff. Here’s everything you need to know about the US proposing tariffs on India and 59 other countries.
US-India Trade Deal: US Proposes Tariffs on India
On Tuesday, the Office of the United States Trade Representative (USTR) said 54 of the economies failed to impose and effectively enforce a prohibition on forced-labor imports. These countries are likely to face 12.5% tariff.
US-India Trade Deal: Other Countries to Face Tariffs
Countries facing US tariffs are China, Vietnam, India, Taiwan, and the United Kingdom of 12.5%.Â
However, according to the trade agency, 6 other economies, including Canada, Ecuador, the EU, Indonesia, Mexico, and Pakistan, were deemed not to have effectively enforced such prohibitions, and these will get 10% tariff.
US-India Trade Deal: 10% Tariff on Countries
The 10% rate would apply to imports from Canada, Mexico, the European Union, Taiwan, and Pakistan, among other places.
Products from other major economies, such as China, India, Japan, South Korea, Brazil, and Switzerland, will be subject to a higher 12.5%.
What are the Exceptions?
These proposed tariffs come with various exceptions, such as beef, coffee, certain fruit, and nut items.Â
However, goods from Canada and Mexico that comply with a North American free trade pact will also be exempt, as well as certain textiles and apparel.
US Tariffs on India & Other Countries
The trade agency wanted written comments on the proposed tariffs until July 06, 2026, and a Section 301 panel is expected to convene public hearings starting on July 07, 2026.
However, apart from investigations into forced labour, the US trade representatives also started probes into excess industrial capacity.
Additional Duties Proposed by the USTR
The USTR proposed additional duties on products from the investigated economies. However, a separate textile mechanism has also been proposed for specific apparel and textile imports.
The investigation was launched on March 12, 2026, and the USTR received testimony from nearly 60 witnesses and around 500 comments during the public consultation process.
