The Trump administration on Thursday imposed new tariffs of 10 per cent and 12.5 per cent on imports from 60 countries, including India. The US administration said the move is aimed at encouraging trading partners to take stronger action against goods produced using forced labour.

The move is the White House's latest effort to advance President Donald Trump's campaign vision of imposing near-global tariffs after the US Supreme Court in February struck down his "reciprocal" duties of 10 per cent to 50 per cent, which were imposed last year under a national emergencies law to reduce the US trade deficit, Reuters reported.

Following recent policy revisions, India now falls under the lower 10 per cent tariff bracket.

When will tariffs take effect?

The new tariffs, imposed under Section 301 of the Trade Act of 1974, will take effect at 12:01 am EDT on Friday. They will replace the temporary 10 per cent global tariff that expires at the same time.

The Office of the US Trade Representative (USTR) said goods already in transit will remain exempt from the new tariffs until July 28.

US Trade Representative Jamieson Greer said President Trump believes that, despite decades of moral appeals, forced labour has not been eliminated from global supply chains.

"The United States has banned the import of goods made with forced labour for nearly a century. It is now time for our trading partners to adopt the same standard," Greer said.

The administration said the tariffs target countries that have failed to ban imports made with forced labour or have not effectively enforced such restrictions.

Under the final framework, countries that already have adequate safeguards in place, have committed to implementing stronger measures, or have adopted partial restrictions will face a 10 per cent tariff.

A US official told ANI that India was initially expected to face a 12.5 per cent tariff, but after meaningful discussions on labour practices, it qualified for the 10 per cent rate under Section 301.

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Which countries are affected?

Countries placed in the 10 per cent tariff category include the United Kingdom, Canada, Mexico, Bangladesh, Pakistan, Malaysia, Indonesia, Cambodia, Sri Lanka, Jordan, Argentina, Ecuador, El Salvador, Guatemala, Honduras, Trinidad and Tobago, and India.

Countries that do not have adequate safeguards against forced labour will face a 12.5 per cent tariff. Certain products from the European Union, Japan, South Korea, Taiwan, and Switzerland will also attract tariffs of either 10 per cent or 12.5 per cent, depending on the applicable category.

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The new tariffs will not apply to oil and gas, fertilizers, certain food products, steel, aluminium, copper, automobiles, or duty-free goods covered under the U.S.-Mexico-Canada Agreement (USMCA).

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