India spared worst of US ‘forced labour’ tariffs, but hard talks loom

Lead

India has avoided the steepest of Washington's latest tariff measures after amending its foreign trade policy to ban imports of goods produced with forced labour, according to reports from Dawn and the South China Morning Post. The Trump administration's new round of tariffs, unveiled last week, targeted 60 economies over alleged failures to act against forced labour in supply chains. While some countries face duties of up to 12.5 per cent, India was placed among 17 economies — including Canada, Britain and Pakistan — that were hit with a lower 10 per cent rate.

The move follows India's amendment of its foreign trade policy, a step the US Trade Representative cited when assigning India to the lower tariff band. Trade experts cited by the South China Morning Post questioned the factual basis of the US force-labour tariff.

Coverage Comparison

Both outlets framed the development as a partial reprieve for India. Dawn, the Pakistani English-language daily, led with the formal mechanics of India's new import prohibition, describing it as a measure that will prohibit the import of goods produced using forced labour. The South China Morning Post (SCMP) emphasised India's placement in the lower tariff band and quoted trade experts who question the factual basis of the US action.

Dawn's coverage detailed the specifics of India's trade ministry notification, while SCMP analysed the broader context of US trade policy and India's efforts to secure a trade deal. The two reports agree on the core sequence: India amended its foreign trade policy, and the US Trade Representative cited that change when assigning tariff rates.

Key Claims

India has prohibited the import of goods produced using forced labour, according to a trade ministry notification dated Monday and reported by Dawn. The notification empowers the central government to prohibit imports of goods produced or manufactured through the use of forced labour, as the ministry stated.

The foreign trade body will investigate whether imported goods were made using forced labour and recommend a ban if evidence is found, Dawn reported. The notification is set to come into force after 30 days.

The US proposed new duties targeting 60 economies over alleged failures to act against forced labour, with proposed tariffs ranging from 10pc to 12.5pc, as reported by Dawn.

The South China Morning Post reported that India was spared the worst of Washington's latest tariff action.

Key Claims

The US Trade Representative imposed a 10 percent tariff on India, the lowest rate in the new round, while proposing higher rates for other economies. Specifically, the tariffs range from 10 percent to 12.5 percent across the 60 targeted economies, as Dawn reported.

India's placement in the lower tariff band was attributed by the US Trade Representative to India's amended foreign trade policy, which prohibits imports made with forced labour, according to SCMP.

Trade experts quoted by SCMP question the factual basis of the US force-labour tariff, suggesting the justification may not align with available evidence.

Perspectives

• US Trade Representative: The US Trade Representative cited India's amended foreign trade policy as the basis for placing India among 17 economies receiving the lower 10 percent tariff rate.
• Trade Experts: As reported by the South China Morning Post, trade experts question the factual basis of the US force-labour tariff, implying the tariff may not be well-founded.
• Indian Trade Ministry: The ministry's notification frames the prohibition as an exercise of its existing authority to restrict imports, stating it empowers the government to prohibit imports of goods produced with forced labour.
• Donald Trump Administration: The administration's proposed tariffs target 60 economies over forced labour concerns, with rates ranging from 10 to 12.5 percent. The action follows legal setbacks to earlier tariff efforts, as reported by Dawn.